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APRA CPS 234 Services

Unlock robust financial services cyber protection with our APRA CPS 234 Services, expertly guiding you through compliance and reinforcing your defences against emerging threats.

Overview of APRA CPS 234 Compliance Requirements and Responsibilities

What is APRA CPS 234?

APRA CPS 234 is a critical standard mandated by the Australian Prudential Regulation Authority, designed to bolster the information security of financial institutions. It requires entities to have robust cybersecurity measures in place to protect against threats and vulnerabilities, ensuring the resilience of their information infrastructure. Our APRA CPS 234 services in Australia offer comprehensive support to navigate and adhere to these regulations. With our expert CPS 234 compliance services, we help secure your financial operations, providing an extensive framework to meet APRA guidelines and withstand cybersecurity challenges.

What are affected entities required to do?

APRA CPS 234 requires regulated entities to clearly define information security roles, maintain a security capability proportionate to threat levels, implement and test controls for information asset protection, and promptly notify APRA of significant security incidents. This compliance is crucial in the financial sector, where organisations, rich in data, face high risks of cyber-attacks due to increasing reliance on technology.

Board and Director Responsibility 

The Standard emphasises the Board’s ultimate responsibility for information security within regulated entities. It expects Boards and senior management to be actively involved in both preventing and addressing information security incidents. For APRA-regulated clients, this involves continuous education of Board members on evolving digital threats and changes in the risk profile.

Relevance of APRA CPS 234 in Today's Cybersecurity Climate

For APRA regulated entities, CPS 234 has been more crucial for setting the tone for cybersecurity in the financial sector in Australia. The introduction of this new regulation ensures that financial institutions are prepared to counteract and manage cyber risks in an increasingly complex landscape. Gridware’s CPS 234 compliance services provide essential support for businesses to understand, implement, and align with these vital regulations, enhancing resilience against cyber incidents.

What are the Key Components of APRA CPS 234?

APRA CPS 234 sets comprehensive standards for information security within Australian financial institutions. This regulation outlines responsibilities and control requirements to ensure resilient information security practices, reflecting the critical need for robust cybersecurity in the financial sector. For a more detailed view, you can refer to the APRA CPS 234 Standard published on the APRA website.

Roles and Responsibilities

It emphasises the responsibility of the Board and senior management in ensuring information security, as detailed in Clauses 13 and 14 of CPS-234.

Information Security Capability

Organisations are required to maintain security measures that match the size and threat level to their information assets, as detailed in Clause 15 of CPS-234.

Implementation of Controls

This includes establishing controls to protect information assets and assessing the effectiveness of these controls, as detailed in Clause 21 of CPS-234.

Incident Management and Response

Organisations must have mechanisms for detecting, managing, and responding to information security incidents, and reporting to APRA in less than 72 hours, as detailed in Clause 23 of CPS-234.

Testing Control Effectiveness

Regular testing of information security controls is necessary to ensure their effectiveness, as detailed in Clause 27 of CPS-234.

Internal Audit and APRA Notification

There are requirements for internal audits of information security controls and mandatory notifications to APRA about significant incidents or control weaknesses, as detailed in Clause 23 of CPS-234.

Organisations Impacted by APRA CPS 234

CPS 234 impacts all entities that are APRA-regulated entities, including:

  • Banks, credit unions, and other authorised deposit-taking institutions (ADIs)
  • Superannuation funds
  • Life insurance companies
  • Friendly societies
  • General insurers
  • Non-operating holding companies
  • Private health insurers

 

Since 1 July 2020, APRA CPS 234 also applies to any third parties managing information assets for these entities. Examples include third-party service providers managing customer data for banks, IT firms hosting servers for insurance companies, or data processing companies working with financial transaction data for credit unions. These third parties play a key role in the information ecosystem of APRA-regulated entities and, therefore, must also comply with CPS 234 to ensure the security and integrity of these vital assets.

APRA CPS 234: Scope and Coverage

As one of Australia’s first regulatory bodies to mandate minimum cybersecurity standards, APRA’s introduction of CPS 234 significantly influenced the landscape. This move has led other regulators, like ASIC, to broaden their view of director responsibilities regarding cybersecurity. Directors now face increased scrutiny and legal action for failing to uphold robust cybersecurity standards. The implementation of CPS 234 highlights the growing legal and regulatory focus on cybersecurity, emphasizing the importance of directors’ roles in ensuring compliance and safeguarding their organisations from cyber threats.

APRA CPS 234 Audit Process: A Step-by-Step Guide

To undertake an APRA CPS 234 compliance audit, the following steps are typically involved:

  1. Step 1 – Preparation and Planning: Begin with a thorough review of APRA CPS 234 requirements, understanding the specific obligations and applicability to your organisation.
  2. Step 2 – Initial Assessment: Assess the current information security practices against the requirements of CPS 234 to identify areas of non-compliance and potential risks.
  3. Step 3 – Gap Analysis: Perform a detailed gap analysis to pinpoint specific areas that need attention for compliance.
  4. Step 4 – Remediation and Implementation: Develop and execute a plan to address any gaps, including updating policies, procedures, and controls as needed.
  5. Step 5 – Testing and Validation: Conduct testing to validate the effectiveness of the implemented controls and ensure they meet the required standards.
  6. Step 6 – Documentation and Reporting: Keep detailed documentation throughout the process for audit purposes and prepare to report compliance status to APRA.
  7. Step 7 – Continuous Monitoring and Improvement: Establish ongoing monitoring and improvement processes to ensure sustained compliance with CPS 234.

These steps form a comprehensive approach to achieving and maintaining compliance with APRA CPS 234.

Why Choose Gridware for APRA CPS 234 Consulting?

Choosing Gridware for APRA CPS 234 audits provides organisations with expert guidance and comprehensive support. Gridware’s team, experienced in financial sector cybersecurity, offers tailored solutions to meet APRA’s stringent standards. Their approach includes a thorough assessment of current practices, identifying gaps, and implementing effective strategies for compliance. Gridware ensures that organisations not only meet regulatory requirements but also strengthen their overall cybersecurity resilience, a crucial factor in today’s rapidly evolving digital landscape.

APRA CPS 234 FAQs

APRA CPS 234 is a cybersecurity requirement standard by the Australian Prudential Regulation Authority, focusing on information security for financial institutions.

It applies to all APRA-regulated entities including banks, insurers, and superannuation funds.

It mandates robust information security measures, incident response mechanisms, and regular auditing and testing of controls.

Third parties handling information for APRA-regulated entities must also comply with CPS 234.

The Board is responsible for ensuring effective information security management and compliance with CPS 234.

Preparation involves assessing current security practices, implementing necessary controls, and ensuring thorough documentation.

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