What evidence do auditors commonly ask for on CPS 230 para 12 Identify, assess and manage operational risk?

Operational risk register covering processes, systems, people and external event sources, with inherent and residual ratings; Risk and control self-assessment (RCSA) outputs per business unit with sign-off dates; Risk taxonomy document mapping risk events to cause categories.

What is the most common gap auditors find on CPS 230 para 12?

Register limited to technology risks, with people and external event causes missing

APRA CPS 230 · Key principles and operational risk management framework (paras 11 to 18)

`CPS 230 para 12` Identify, assess and manage operational risk

The entity must find, evaluate and control the operational risks that can arise from failed or inadequate processes and systems, from what staff do or fail to do, and from external drivers and events, recognising that every product, activity, process and system carries operational risk.

Source: APRA CPS 230, CPS 230 para 12. The statement above is our statement of the clause, read from the published text and cited so you can check it against the official text, not the instrument verbatim. Open APRA CPS 230 in the compliance library.

Applies to APRA-regulated entities.

artefacts

held by a system

at each review

moderate

to go live

Document repository

where the evidence lives

teal = a system already holds it · olive = produced at each review. To go live: easy when half or more of the artefacts are already held by a system, moderate from a quarter to a half, hard below a quarter.

These are the artefacts auditors commonly ask for on this requirement, our guidance rather than text from the standard. Your assessor decides what is sufficient in your context, and asks for samples across the period when a report covers one.

system holds itEvidence a system already holds

Risk taxonomy document mapping risk events to cause categories · Document repository

periodic reviewEvidence produced at each review

Risk and control self-assessment (RCSA) outputs per business unit with sign-off dates · Document repository

governing documentDocuments that govern the control

Operational risk register covering processes, systems, people and external event sources, with inherent and residual ratings · Policy repository / GRC workspace

First move

Start with the 1 of 3 artefacts that already live in a system (Document repository); keep the periodic reviews but log each one as a dated record with a named reviewer.

Common gaps auditors find

Register limited to technology risks, with people and external event causes missing
RCSAs not refreshed when processes or systems change

Do this for your whole sheet

Paste the rows you run your controls from and get this mapping for every control at once, with the periodic-review ones flagged and a first move per row. No account for the first run.

Build my evidence sheet

CPS 230 para 11 Key principles: manage operational risk, keep critical operations within tolerance, manage service provider… · CPS 230 para 13 Prevent disruption, adapt within tolerance and return to normal promptly