ISO 31000
International guidelines for risk management framework
APRA CPS 234
Australian prudential standard for information security resilience.
Quick Verdict
ISO 31000 offers voluntary global risk management guidelines for all organizations, while APRA CPS 234 mandates enforceable information security for Australian financial entities. Companies adopt ISO 31000 for strategic resilience; CPS 234 ensures regulatory compliance and cyber protection.
ISO 31000
ISO 31000:2018 Risk management — Guidelines
Key Features
- Eight principles for integrated risk management
- Non-certifiable guidelines for all organizations
- Iterative process: identify, analyze, treat, monitor
- Leadership commitment and cultural embedding
- Customizable to context and continual improvement
APRA CPS 234
APRA Prudential Standard CPS 234 Information Security
Key Features
- Board ultimate responsibility for information security
- 72-hour APRA notification for material incidents
- Systematic independent testing of controls
- Third-party managed asset requirements
- Internal audit assurance including vendors
Detailed Analysis
A comprehensive look at the specific requirements, scope, and impact of each standard.
ISO 31000 Details
What It Is
ISO 31000:2018 — Risk management — Guidelines is a principles-based international framework providing guidance on managing risk systematically. It applies to any organization, defining risk as the effect of uncertainty on objectives. The approach emphasizes integration into governance, strategy, and operations through principles, framework, and process.
Key Components
- **Three pillarsEight principles (e.g., integrated, customized, continual improvement), framework (leadership, design, implementation, evaluation), and process (communication, assessment, treatment, monitoring).
- No fixed controls; flexible, non-certifiable model focused on repeatable cycles like PDCA.
Why Organizations Use It
- Drives strategic value, resilience, and opportunity realization.
- Meets regulatory expectations indirectly; builds stakeholder trust.
- Enhances decision-making, reduces losses, lowers insurance costs.
- Provides competitive edge via risk-informed strategies.
Implementation Overview
- Phased: diagnose, build, operate, institutionalize.
- Involves policy, training, tools, integration; suitable for all sizes/sectors.
- No certification; internal audits ensure alignment. (178 words)
APRA CPS 234 Details
What It Is
APRA Prudential Standard CPS 234 (Information Security) is a binding regulation for APRA-regulated financial entities in Australia. Effective from 1 July 2019, it mandates resilience against information security incidents, including cyber-attacks, through a risk-based governance and assurance model focused on confidentiality, integrity, and availability (CIA) of information assets, extending to third parties.
Key Components
- **11 core requirementsBoard accountability, role definitions, capability maintenance, policy framework, asset classification, lifecycle controls, incident response, systematic testing, internal audit assurance, and APRA notifications (72 hours for material incidents, 10 business days for control weaknesses).
- Built on commensurate, outcomes-focused principles; no fixed control count.
- Compliance via evidence-driven assurance, not certification.
Why Organizations Use It
- Mandatory for ADIs, insurers, super funds to avoid penalties, enforcement.
- Enhances cyber resilience, stakeholder protection, operational continuity.
- Builds trust, reduces incident impact, strengthens third-party oversight.
Implementation Overview
- Phased: gap analysis, governance, asset classification, controls, testing, assurance.
- Applies to all sizes in banking/insurance/super; group-wide for Heads.
- Requires independent audits, annual testing; no formal certification.
Key Differences
| Aspect | ISO 31000 | APRA CPS 234 |
|---|---|---|
| Scope | General risk management principles, framework, process | Information security capability, controls, incidents |
| Industry | All sectors worldwide, sector-agnostic | Australian financial services (banks, insurers) |
| Nature | Voluntary guidelines, non-certifiable | Mandatory prudential standard, enforceable |
| Testing | Continual improvement, internal audits optional | Systematic, independent testing mandatory annually |
| Penalties | No legal penalties, reputational risk only | Fines, enforcement, license actions by APRA |
Scope
Industry
Nature
Testing
Penalties
Frequently Asked Questions
Common questions about ISO 31000 and APRA CPS 234
ISO 31000 FAQ
APRA CPS 234 FAQ
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