The Australian Prudential Regulation Authority (APRA) will consult by the end of 2025 on targeted amendments to CPS 230 Operational Risk Management, responding to industry feedback on difficulties applying the standard’s contractual obligations to arrangements with non-traditional service providers (NTSPs). NTSPs are typically market-mandated providers such as stock exchanges, payment schemes, and clearing and settlement facilities, where arrangements may lack formal contracts or rely on standardised, non-negotiable terms. The proposed amendments will clarify APRA’s expectations for NTSP arrangements, particularly around contract uplift and service level monitoring, while leaving all other CPS 230 risk obligations unchanged. APRA plans an accelerated policy process including a one-month consultation period, with the aim of finalising the targeted changes before 1 July 2026.
Australian Prudential Regulation Authority 2025-10-31
Australian Prudential Regulation Authority to consult on targeted CPS 230 amendments clarifying requirements for non-traditional service providers
The Australian Prudential Regulation Authority will consult by the end of 2025 on amendments to CPS 230 Operational Risk Management, addressing challenges with non-traditional service providers. The amendments will clarify expectations for contract uplift and service level monitoring, with final changes expected by 1 July 2026.