CPS 230 Operational Risk Management: Strengthening Resilience in Financial Services
Understanding CPS 230
Operational resilience has become one of the most critical priorities for financial services firms globally. In Australia, the Australian Prudential Regulation Authority (APRA) introduced CPS 230 Operational Risk Management to ensure regulated entities, including banks, insurers, and superannuation trustees, have robust frameworks for identifying, managing, and mitigating operational risk.
CPS230 requires financial institutions to integrate resilience into their core business strategy, covering governance, risk assessment, controls, and incident management. This extends beyond technology outages to encompass supply chain disruptions, cyber threats, data governance, and broader business continuity considerations.
For wealth managers, licensees, brokers, and payments/fintech firms, the operational risk landscape is just as pressing. Even though not all fall directly under APRA’s remit, the expectations set by CPS230 influence best practice and are quickly becoming industry benchmarks.
Why CPS 230 Matters
The intent of CPS 230 is clear: protect customers, safeguard markets, and build confidence in the financial system. Failure to demonstrate resilience can lead to significant regulatory, reputational, and financial consequences.
Key focus areas include:
Board accountability for operational resilience.
Risk identification and controls spanning people, processes, systems, and third parties.
Incident response and recovery planning that prioritises customer outcomes.
Third-party and outsourcing oversight ensuring resilience across supply chains.
Testing and assurance to validate the effectiveness of frameworks.
These requirements place pressure on firms not only to comply but to embed resilience as a strategic differentiator.
How OCG Can Help
At Oceanic Consulting Group (OCG), we specialise in helping financial services firms turn regulatory requirements into opportunities for stronger governance and smarter operations. With deep expertise across APRA, ASIC, AUSTRAC, OAIC and RBA/Treasury settings, we support organisations in building CPS 230-aligned frameworks that are practical, defensible, and scalable.
Our services include:
Operational risk assessments to map vulnerabilities and control gaps.
Board and executive advisory on embedding resilience into governance structures.
Framework and policy design aligned with CPS 230 and cross-jurisdictional standards.
Third-party and outsourcing reviews to strengthen resilience across the value chain.
Remediation and assurance testing to validate compliance and mitigate exposure.
File Review as a Service (FRaaS) to provide independent oversight of risk documentation and evidence, ensuring defensibility under scrutiny.
With teams across Sydney, Melbourne, London, Hong Kong, Singapore, and Dubai, OCG brings both local insight and global perspective to operational risk management.
FAQs
What is APRA CPS 230?
CPS 230 is APRA’s prudential standard on operational risk management, requiring financial institutions to strengthen resilience, governance, and risk frameworks.
Who does CPS 230 apply to?
It applies to APRA-regulated entities, including banks, insurers, and superannuation funds, but its principles are relevant across the financial services sector.
Why is operational resilience important?
Resilience ensures firms can withstand disruptions, protect customers, and meet regulatory obligations while maintaining trust and stability.
How does CPS 230 affect outsourcing?
It places accountability on boards to ensure third-party providers meet resilience standards, with clear oversight and contractual safeguards.
How can OCG support CPS 230 compliance?
OCG helps design, implement, and assure CPS 230 frameworks through risk advisory, compliance alignment, remediation, and independent file reviews.
Strengthen Your CPS230 Programme
Operational risk management is no longer a compliance exercise; it’s a foundation for trust and growth. If your organisation is preparing for CPS230 or seeking to benchmark resilience against global best practice, OCG can help.
Contact us today to explore how our risk advisory expertise can strengthen your operational resilience and regulatory confidence.
