Understanding CPS 234: Ensuring Cyber Security for Australian Financial Institutions

In an era where cyber threats are becoming increasingly sophisticated, the importance of robust cybersecurity measures cannot be overstated. The Australian Prudential Regulation Authority (APRA) recognises this, which is why they introduced Prudential Standard CPS 234. This standard sets out the minimum requirements for managing information security for APRA-regulated entities. In this blog post, we’ll explore what CPS 234 covers, which businesses need to comply, what steps are required for compliance, and how Aegis Cybersecurity can support organisations in meeting these obligations.

What is CPS 234?

CPS 234, formally known as the Prudential Standard CPS 234 Information Security, was introduced by APRA to enhance the resilience of regulated entities against information security incidents, including cyberattacks. This standard came into effect on 1 July 2019 and mandates that organisations have appropriate information security controls in place to protect their sensitive information.

The primary objectives of CPS 234 are to:

1. Ensure entities can maintain the confidentiality, integrity, and availability of information.
2. Promote effective governance and management of information security.
3. Encourage entities to continuously assess and improve their information security posture.

Which Businesses Need to Comply with CPS 234?

CPS 234 applies to all APRA-regulated entities. This includes, but is not limited to:

• Banks and other deposit-taking institutions.
• Insurers and insurance brokers.
• Superannuation funds.
• Private health insurers.
• Friendly societies.

Essentially, if your business is regulated by APRA, you are required to comply with CPS 234. This standard also extends to third-party service providers that handle sensitive information on behalf of these entities.

What Do Businesses Need to Do to Comply with CPS 234?

Compliance with CPS 234 involves several key steps, which can be broadly categorised into governance, risk management, and incident response. Let’s delve into each of these areas in more detail.

1. Governance

Board and Senior Management Responsibilities: The board and senior management of an entity are ultimately responsible for the entity’s information security. They must ensure that appropriate governance structures are in place to oversee information security risks.

Information Security Policy: Organisations must develop and implement an information security policy that outlines their approach to managing information security risks. This policy should be reviewed and approved by the board and be regularly updated to reflect changes in the threat landscape.

Roles and Responsibilities: Clear roles and responsibilities for information security must be defined and assigned within the organisation. This includes appointing an individual or team with the necessary skills and authority to oversee information security.

2. Risk Management

Information Asset Identification and Classification: Entities must identify and classify their information assets based on their sensitivity and criticality. This helps in prioritising security efforts and resources towards protecting the most important assets.

Risk Assessments: Regular risk assessments must be conducted to identify potential threats and vulnerabilities to information assets. These assessments should consider both internal and external risks, including those posed by third-party service providers.

Security Controls: Appropriate security controls must be implemented to mitigate identified risks. These controls should cover a range of measures, including technical, administrative, and physical safeguards. Examples include access controls, encryption, and regular security patching.

Testing and Assurance: Entities must regularly test the effectiveness of their information security controls. This includes conducting penetration testing, vulnerability assessments, and security audits. The results of these tests should be used to improve security measures.

3. Incident Response

Incident Management Plan: Organisations must have a robust incident management plan in place to respond to information security incidents. This plan should outline the procedures for detecting, reporting, and responding to incidents in a timely manner.

Incident Notification: APRA must be notified of any information security incidents that could materially affect the entity or its customers. This notification must be made as soon as possible, but no later than 72 hours after becoming aware of the incident.

Post-Incident Reviews: After an incident, a thorough review must be conducted to identify the root cause and any weaknesses in the entity’s information security controls. Lessons learned from these reviews should be used to improve the organisation’s security posture.

How Aegis Cybersecurity Can Support Compliance

At Aegis Cybersecurity, we specialise in providing comprehensive cybersecurity audit, advisory, and governance services to help organisations comply with CPS 234. Here’s how we can support your business:

1. Cybersecurity Audits

Our team of experienced cybersecurity auditors can conduct detailed assessments of your current security posture. We evaluate your existing controls, identify gaps, and provide actionable recommendations to enhance your information security framework. Our audits cover all aspects of CPS 234, ensuring you meet APRA’s requirements.

2. Advisory Services

Navigating the complexities of CPS 234 can be challenging. Our advisory services are designed to provide you with expert guidance every step of the way. We can help you develop and implement a robust information security policy, conduct risk assessments, and establish effective governance structures. Our advisors work closely with your board and senior management to ensure they understand their responsibilities and are equipped to oversee information security risks.

3. Risk Management

Effective risk management is at the heart of CPS 234 compliance. We assist organisations in identifying and classifying their information assets, conducting comprehensive risk assessments, and implementing appropriate security controls. Our risk management services are tailored to your specific needs, helping you prioritise your security efforts and resources.

4. Incident Response

Being prepared for information security incidents is crucial. We can help you develop and implement a robust incident management plan, ensuring you can respond swiftly and effectively to any incidents that arise. Our team can also assist with incident notification and post-incident reviews, helping you meet APRA’s reporting requirements and continuously improve your security measures.

5. Continuous Improvement

Cyber threats are constantly evolving, and maintaining compliance with CPS 234 requires ongoing vigilance. We offer continuous improvement services to help you stay ahead of emerging threats and ensure your security controls remain effective. This includes regular testing and assurance activities, as well as updates to your information security policy and procedures.

Conclusion

CPS 234 is a vital standard for ensuring the resilience of Australia’s financial institutions against information security threats. Compliance requires a comprehensive approach to governance, risk management, and incident response. At Aegis Cybersecurity, we are committed to helping businesses meet these requirements and protect their sensitive information.

Whether you need a thorough cybersecurity audit, expert advisory services, or support with risk management and incident response, our team is here to assist. Contact us today to learn more about how we can help your organisation achieve CPS 234 compliance and strengthen your information security posture. Your business’s security is our priority, and with Aegis Cybersecurity by your side, you can navigate the complexities of CPS 234 with confidence.