What evidence do auditors commonly ask for on CPS 230 para 27 Risk assessment before providing a material service to another party?

Register of material services the entity provides to other parties (including group members); Pre-commencement risk assessment for each such service, approved before go-live; Any APRA correspondence requiring strengthened controls and the response.

What is the most common gap auditors find on CPS 230 para 27?

Services supplied to related entities not treated as provision to another party

APRA CPS 230 · Operational risk management, controls and incidents (paras 23 to 32)

`CPS 230 para 27` Risk assessment before providing a material service to another party

Before it starts supplying a material service to another party, the entity must complete a comprehensive risk assessment showing that it will still meet its prudential obligations once the arrangement is in place. APRA can require the entity to review and strengthen its controls or processes where it sees heightened prudential risk in such an arrangement.

Source: APRA CPS 230, CPS 230 para 27. 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

hard

to go live

Policy repository / GRC workspace

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

none for this control

periodic reviewEvidence produced at each review

Pre-commencement risk assessment for each such service, approved before go-live · Policy repository / GRC workspace

governing documentDocuments that govern the control

Register of material services the entity provides to other parties (including group members) · Policy repository / GRC workspace
Any APRA correspondence requiring strengthened controls and the response · Policy repository / GRC workspace

First move

No system holds this evidence for you: it is people and documents. Reminders and routing to the owner still save time. Put the document under version control with an owner and review date, and log each review as a record with reviewer and date.

Common gaps auditors find

Services supplied to related entities not treated as provision to another party
Assessment completed after the service began

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 26 Maintain a comprehensive operational risk profile assessment · CPS 230 para 28 Design, implement and embed internal controls