APRA Regulated Entity
Australian Prudential Regulation Authority (APRA) was established 25 years ago as an independent statutory body that oversees institutions. The role of an APRA-regulated entity – to govern and uphold the safety of financial entities. Additionally, working closely with Australian Securities and Investment Commissions safeguards the interests of depositors, policyholders, and members’ superannuation funds and promotes system stability.
Also, maintaining information security capabilities that address vulnerabilities and threats – APRA entities ensure effectively handled resilient information security incidents.
As, small business owners have key objectives to minimise the impact of information security incidents on the confidentiality, integrity, and availability of the sensitive information they manage.
Also, the third party or small business owners engaged with the authorised deposit-taking institution (ADIs), Level 2 Insurance group, Life Insurance, private health insurer, RSE and EFLICE must comply with APRA Standard.
APRA Cyber Compliance Security Measures
Furthermore, robust cybersecurity measures are important and cannot be overstated. In any event, CPS 234, cyber compliance a standard introduced by the Australian Prudential Regulation Authority (APRA), is designed to ensure that these entities maintain strong information security frameworks. Adhering to cyber compliance, financial institutions are required to implement comprehensive strategies to protect sensitive data and mitigate cyber threats.
Consequently, the overall resilience of the financial sector is enhanced, safeguarding both the institutions and their customers.
However, Cyber Security consultants can assist your business in attaining Prudential Standard CPS 234 Information Security compliance. CPS234 compliance is based upon a minimum standard of compliance to allow APRA Regulated entities to work within the Australian Financial and Insurance industry.
Principles of Cyber Security
- Physical Security
- Technical Security
- Administrative controls
- Concept of least privilege
- Essential Eight
- NIST Cyber Security Framework
- Application Whitelisting
- Patch management
- Multifactor Authentication
CPS 234: Frequently Asked Questions
What is APRA CPS 234?
CPS 234 is a prudential standard issued by the Australian Prudential Regulation Authority setting information security requirements for the entities it regulates. It has applied since 1 July 2019. Its stated aim is to ensure regulated entities are resilient against information security incidents, including cyber attacks, and to minimise the impact of those incidents on the confidentiality, integrity and availability of information assets.
Does CPS 234 apply to my business?
It applies directly to APRA-regulated entities: authorised deposit-taking institutions, general insurers, life companies, private health insurers and superannuation RSE licensees. For foreign entities the obligations apply to their Australian branch operations. It also reaches suppliers indirectly, because regulated entities must manage the security of information assets handled on their behalf by third parties.
What are the notification deadlines?
Two matter. A material information security incident must be notified to APRA as soon as possible and no later than 72 hours after the entity becomes aware of it. A material information security control weakness that cannot be remediated in a timely manner must be notified no later than 10 business days after it is identified.
We supply services to an APRA-regulated entity. What does that mean for us?
Regulated entities are required to assess the information security capability of third parties that manage their information assets. In practice suppliers are asked to evidence their own controls through security questionnaires, contractual security clauses and, in some cases, audit rights.
What does CPS 234 actually require?
Clearly defined information security roles and responsibilities, an information security capability proportionate to the threats faced, controls to protect information assets, systematic testing of the effectiveness of those controls, internal audit review, and the notification obligations above.
Where should we start?
With a gap assessment against the requirements, focused on where your information assets sit, who has access to them, and whether your existing controls are actually tested rather than simply documented.