APRA CPS 234
Prudential standard for information security in APRA-regulated entities
ISO 56002
International guidance standard for innovation management systems
Quick Verdict
APRA CPS 234 mandates information security resilience for Australian financial firms with strict testing and notifications, while ISO 56002 provides voluntary guidance for building innovation management systems across all organizations. Firms adopt CPS 234 for regulatory compliance; ISO 56002 for strategic capability.
APRA CPS 234
APRA Prudential Standard CPS 234 Information Security
Key Features
- Board ultimately responsible for information security
- 72-hour notification for material security incidents
- Covers third-party managed information assets explicitly
- Risk-based systematic control testing and assurance
- Asset classification by criticality and sensitivity
ISO 56002
ISO 56002:2019 Innovation management system — Guidance
Key Features
- PDCA-aligned management system framework
- Top management leadership commitment
- Portfolio and uncertainty management
- Performance evaluation with KPIs and audits
- Continual improvement and learning loops
Detailed Analysis
A comprehensive look at the specific requirements, scope, and impact of each standard.
APRA CPS 234 Details
What It Is
APRA Prudential Standard CPS 234 (Information Security) is a binding prudential regulation for Australian financial institutions regulated by APRA. Effective 1 July 2019, it mandates maintaining an information security capability commensurate with threats and vulnerabilities to protect confidentiality, integrity, and availability of information assets, including those managed by third parties. It adopts a risk-based, governance-driven, assurance-focused approach with board accountability.
Key Components
- **GovernanceBoard responsibility, defined roles (paras 13-14).
- **Risk managementAsset classification by criticality/sensitivity (para 20).
- **ControlsLifecycle implementation commensurate with risk (para 21).
- **Incident responseDetection mechanisms, tested plans (paras 23-26).
- **AssuranceSystematic testing, internal audit reviews (paras 27-34).
- **Reporting72-hour incident notices, 10-day weakness notifications (paras 35-36). Principle-based, no fixed controls count.
Why Organizations Use It
- Mandatory for APRA entities (banks, insurers, super funds) to avoid enforcement.
- Enhances cyber resilience, third-party oversight.
- Protects customers, ensures operational continuity.
- Builds regulatory trust, competitive advantage.
Implementation Overview
Phased: gap analysis, policy framework, asset inventory, controls/testing, monitoring. Applies to all sizes of APRA-regulated entities in Australia. APRA supervises via audits; emphasizes internal assurance, no external certification.
ISO 56002 Details
What It Is
ISO 56002:2019, titled Innovation management — Innovation management system — Guidance, is a guidance framework for establishing, implementing, maintaining, and improving an Innovation Management System (IMS). Its primary purpose is to enable organizations to manage innovation systematically across all types, sectors, and sizes, focusing on value realization through a PDCA (Plan-Do-Check-Act) cycle aligned with ISO's High-Level Structure.
Key Components
- Seven core clauses: context, leadership, planning, support, operation, performance evaluation, improvement.
- Eight principles: value realization, leadership commitment, strategic direction, culture, portfolio thinking, uncertainty management, learning, stakeholder engagement.
- Non-prescriptive; no fixed controls, emphasizes tailored processes.
- Conformity via self-assessment or third-party audits; links to certifiable ISO 56001.
Why Organizations Use It
- Drives strategic innovation, reduces 'innovation theater' and zombie projects.
- Enhances governance, risk/uncertainty management, portfolio discipline.
- Builds stakeholder trust, competitiveness, integration with ISO 9001/27001.
- No legal mandate; voluntary for capability building and credibility.
Implementation Overview
- Phased: awareness/gap analysis, design, pilot, scale, sustain.
- Applicable universally; staged for SMEs.
- Involves policy, roles, KPIs, audits; optional external assurance. (178 words)
Key Differences
| Aspect | APRA CPS 234 | ISO 56002 |
|---|---|---|
| Scope | Information security and cyber resilience | Innovation management system guidance |
| Industry | Australian financial institutions only | All organizations worldwide |
| Nature | Mandatory prudential regulation | Voluntary guidance standard |
| Testing | Systematic independent control testing | Internal audits and management reviews |
| Penalties | Supervisory actions and penalties | No legal penalties |
Scope
Industry
Nature
Testing
Penalties
Frequently Asked Questions
Common questions about APRA CPS 234 and ISO 56002
APRA CPS 234 FAQ
ISO 56002 FAQ
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