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Australia Prudential Regulatory Authority (ARPA) has moved to strengthen board oversight and assurance of cybersecurity, by updating CPS 230 ‘Operational Risk Management’ standards. Proposing requirements for more robust oversight of cybersecurity risks by boards of covered banks, insurers and superannuation trustees.
̢We expect regulated entities to be proactive in preparing for implementation, rather than waiting until the last minute to get ready to meet the new requirements,̢ APRA chairman John Lonsdale said.
The update places emphasis on boards of covered entities to manage cyber as an operational risks. Requiring assurance the cybersecuirty risk is being managed by boards. A clear move requiring organizations proactive management of operation risk, including cyber. Operational risk attracts regulatory capital, and as demonstrated by the recent increase in MediBank’s ORC. Enforcing capital adequacy requirements for cybersecurity is a direction that Australian regulators have taken, to ensure that covered firms have the liquidity to manage cyber risk.
A direction that is formalized by proposed updates in CPC 230.
Ted Dziekanowski Stephen Pitt-Walker, JD, FGIA
#cybersecurity #cyberriskmanagement #cyberregulation #cyberlegal
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