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The effective date for the new standard has recently moved to 1 July 2025 and it builds on other APRA standards relating to operational risk (e.g. CPS 220, SPS 220). The focus of this new standard is on firms' resilience to operational risks and disruptions. This new standard was top of mind for many at the Future of Superannuation Administration Forum I attended in Sydney last month where outsourcing was a key area of focus.
The standard applies to APRA-regulated entities, so it will have implications for the NZ arms of Australian banks. That said, NZ MIS and FAP licence holders would benefit from having a read to understand the perspective of a regulator in close proximity relating to operational risk management, noting that they have standard licence condition obligations covering the management of outsourced business functions (MIS, FAP) and BCP (FAP) which this prudential standard has a focus on.
The Mosaic team has considerable expertise in supporting the review and uplift of operational risk capability, along with reviewing relationships with third party outsourced functions, by virtue of its work with banking clients on BS11 initiatives. Feel free to reach out for a chat if this is an area of concern or interest.
