What is the CSP 234?
he Australian Prudential Regulation Authority (APRA) is the regulator of the Australian financial services industry. APRA oversees banks, credit unions, insurance companies, and most members of the superannuation industry. One of the key standards set by APRA to ensure the resilience of these entities against cybersecurity threats is CPS 234.
CPS 234, or Prudential Standard CPS 234 Information Security, was introduced to improve the information security of APRA-regulated entities. It came into effect on 1 July 2019 and sets out the minimum standards these organisations must meet to protect themselves against information security incidents, including cyber attacks, data breaches, and other forms of security threats. The main objective of CPS 234 is to ensure that the regulated entities maintain the security and confidentiality of sensitive information, as well as the integrity and availability of critical systems.
Key Requirements of CPS 234
1. Information Security Framework: Entities must have an information security framework in place. This framework should be tailored to the size, business activities, and risk profile of the entity. It must include policies, procedures, and controls to manage information security risks effectively.
2. Roles and Responsibilities: CPS 234 mandates clear delineation of information security roles and responsibilities. Senior management must be actively involved and accountable for the information security within the organisation. This ensures that information security is prioritised at all levels of the entity.
3. Information Asset Identification and Classification: Entities are required to identify and classify information assets based on their criticality and sensitivity. This helps in prioritising security measures and focusing efforts where they are most needed.
4. Implementation of Controls: Adequate security controls must be implemented to protect information assets. These controls should cover all aspects of information security, including preventive, detective, and responsive measures.
5. Incident Management: Entities must have robust incident management protocols in place. This involves the detection, reporting, and response to information security incidents. CPS 234 requires entities to notify APRA within 72 hours of becoming aware of an information security incident that could materially affect the entity.
6. Testing of Controls: Regular testing of information security controls is mandated to ensure they are effective. This includes vulnerability assessments, penetration testing, and other forms of security testing.
7. Security Capabilities of Service Providers: Where entities outsource certain activities, they must ensure that third-party service providers have appropriate security measures in place. This is critical as third-party vulnerabilities can pose significant risks to the entity.
The Importance of CPS 234 Compliance
Compliance with CPS 234 is not just a regulatory requirement; it is essential for the overall security posture of financial entities. It helps in:
- Mitigating Risks: By identifying and addressing security risks proactively, entities can mitigate potential threats before they cause significant harm.
- Protecting Sensitive Information: Ensuring the confidentiality and integrity of sensitive information is crucial for maintaining customer trust and safeguarding the organisation’s reputation.
- Ensuring Business Continuity: Adequate security controls and incident management protocols ensure that business operations can continue even in the event of a security breach.
Compliance and Penalties
Compliance with CPS 234 is mandatory for all APRA-regulated entities. Failure to meet these requirements can result in significant penalties, including fines and increased scrutiny from the regulator. Non-compliance not only exposes an organisation to regulatory action but also heightens the risk of security breaches, which can lead to financial loss, reputational damage, and operational disruptions. Ensuring compliance is crucial for maintaining trust with stakeholders and safeguarding the organisation’s long-term viability. At Aegis Cybersecurity, we help you navigate these regulatory demands, ensuring that your information security practices are robust and compliant, thereby mitigating the risk of penalties and enhancing your overall security posture.
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