ISO 27001
International standard for information security management systems
APRA CPS 234
Australian prudential standard for information security resilience
Quick Verdict
ISO 27001 offers voluntary global ISMS certification for all industries, while APRA CPS 234 mandates enforceable information security for Australian financial entities with strict Board accountability and APRA notifications.
ISO 27001
ISO/IEC 27001:2022 Information Security Management Systems
Key Features
- Risk-based approach to ISMS
- 93 Annex A controls in four themes
- PDCA continual improvement cycle
- Top management leadership commitment
- Technology-agnostic, industry-independent framework
APRA CPS 234
Prudential Standard CPS 234 Information Security
Key Features
- Board ultimate responsibility for information security
- 72-hour APRA notification for material incidents
- Third-party managed assets fully in scope
- Systematic risk-based control testing required
- Internal audit assurance of all controls
Detailed Analysis
A comprehensive look at the specific requirements, scope, and impact of each standard.
ISO 27001 Details
What It Is
ISO/IEC 27001:2022 is the international certification standard for establishing, implementing, maintaining, and improving an Information Security Management System (ISMS). It provides a systematic, risk-based framework for managing information risks across confidentiality, integrity, and availability, applicable to all organization sizes and industries.
Key Components
- **Clauses 4-10Mandatory requirements covering context, leadership, planning, support, operation, evaluation, and improvement.
- **Annex A93 controls in four themes (Organizational: 37, People: 8, Physical: 14, Technological: 34).
- Built on PDCA cycle for continual improvement.
- Statement of Applicability (SoA) justifies control selection.
Why Organizations Use It
- Meets regulatory needs (e.g., GDPR alignment) and contractual demands.
- Reduces breach risks (30% fewer incidents) and costs ($4.45M average).
- Builds trust, wins bids (20-30% more), enables market access.
- Fosters security culture, insurance discounts.
Implementation Overview
- Phased: Initiation, risk assessment, deployment, certification (6-18 months).
- Involves gap analysis, training, audits; scalable for SMEs to enterprises.
- Certification via accredited bodies: Stage 1 (docs), Stage 2 (effectiveness), annual surveillance.
APRA CPS 234 Details
What It Is
APRA Prudential Standard CPS 234 (Information Security) is a binding prudential regulation for APRA-regulated financial entities in Australia, effective 1 July 2019. It requires maintaining information security capabilities commensurate with threats and vulnerabilities to minimize impacts on confidentiality, integrity, and availability (CIA) of information assets, including those managed by third parties. Adopts a risk-based, assurance-driven approach focused on governance, controls, testing, and rapid reporting.
Key Components
- Board ultimate responsibility (para 13) and defined roles (para 14)
- Asset classification by criticality/sensitivity (para 20)
- Lifecycle controls commensurate with risks (paras 21-22)
- Systematic testing program (paras 27-31) and internal audit assurance (paras 32-34)
- Incident response plans with annual testing (paras 23-26)
- APRA notifications: 72 hours for material incidents (para 35), 10 business days for control weaknesses (para 36) No fixed controls; principles-based with PPG 234 guidance.
Why Organizations Use It
- Mandatory for ADIs, insurers, super funds to avoid penalties, enforcement
- Mitigates cyber risks, ensures operational resilience
- Builds customer trust, aligns with CPS 220/230, NIST/ISO
- Enables competitive differentiation via robust governance
Implementation Overview
Phased: gap analysis, policy framework, asset inventory, controls/testing, third-party assessments. Applies to all sizes in Australian financial sector; APRA supervision via audits, no external certification.
Key Differences
| Aspect | ISO 27001 | APRA CPS 234 |
|---|---|---|
| Scope | ISMS for all information assets globally | Information security for financial entities' assets |
| Industry | All industries, all sizes worldwide | APRA-regulated Australian financial services |
| Nature | Voluntary international certification standard | Mandatory prudential regulation with enforcement |
| Testing | Internal audits, management reviews, certification | Systematic testing, internal audit, Board assurance |
| Penalties | Loss of certification, no legal penalties | Regulatory sanctions, fines, supervisory actions |
Scope
Industry
Nature
Testing
Penalties
Frequently Asked Questions
Common questions about ISO 27001 and APRA CPS 234
ISO 27001 FAQ
APRA CPS 234 FAQ
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