Overview
Prudential Standard CPS 231 provides a robust framework for APRA-regulated entities to manage the risks arising from outsourcing arrangements. It includes guidance on assessing service providers, ensuring sufficient contractual protections, and maintaining the ability to meet APRA's requirements. Key requirements include detailed documentation of outsourcing arrangements, monitoring of outsourced service providers, and ensuring business continuity. CPS 231 applies to material outsourcing arrangements, which are defined as those that have the potential to impact an institution's prudential obligations or business operations significantly.