CPS 230 is Here: How Zycus Can Help Procurement Lead the Charge

Listen to this blog

The Australian Prudential Regulation Authority (APRA) has introduced CPS 230, a landmark prudential standard focused on operational risk management, effective from 1 July 2025. It requires banks, insurers, and superannuation funds to:

Clearly identify critical operations
Maintain oversight of material service providers
Build robust business continuity and risk management frameworks

Procurement functions are now central to delivering compliance—particularly in managing third-party risk, contract resilience, and supplier continuity.

How Zycus Can Help You Prepare for CPS 230

At Zycus, we work with procurement leaders across Australia’s financial services sector. This blog outlines how Zycus solutions align with CPS 230 expectations—backed by decades of global procurement automation experience, and our ongoing collaboration with regulated entities preparing for July 2025.

Identify Critical Operations and Material Service Providers

CPS 230 requirement:
Clearly define third parties supporting critical business functions and assess their materiality to operational continuity.

How Zycus supports:

AI-based supplier segmentation: Zycus classifies vendors by operational criticality, risk exposure, and regulatory impact.
Centralized supplier management: Our platform offers a unified, accurate view of vendor dependencies and subcontractor structures.

Trusted by over 400 enterprises globally, Zycus’ AI-driven Supplier Management solution ensures governance and traceability at every level of vendor engagement.

Monitor Risk Continuously, Not Periodically

CPS 230 requirement:
Procurement must demonstrate real-time visibility into third-party risks, including financial viability, cybersecurity, and ESG factors.

How Zycus supports:

Zycus Supplier Risk Management (SRPM): Offers dynamic risk scoring with real-time alerts from trusted sources like D&B, Ecovadis, and public records.
Automated risk workflows: Ensure structured onboarding, periodic reassessment, and issue escalation.

SRPM is used by APAC’s leading procurement teams to manage operational and reputational risk across complex vendor landscapes.

Strengthen Contracts with Resilience Clauses

CPS 230 requirement:
Contracts with material vendors must safeguard business continuity, audit rights, and regulatory compliance.

How Zycus supports:

Zycus CLM (Contract Lifecycle Management): Flags missing risk clauses and recommends AI-generated templates based on CPS 230-aligned policies.
Smart clause library: Includes APRA-aligned fallback, notification, and termination clauses ready to embed.

Zycus CLM ensures no critical clause is missed—and every contract is audit-ready.

Prepare Exit Strategies and Fallback Plans

CPS 230 requirement:
Entities must prepare to transition away from material service providers without disrupting critical operations.

How Zycus supports:

iConsole workflows: Pre-built contingency planning tools to model alternative supplier sourcing and transition timelines.
Supplier performance dashboards: Help identify underperforming vendors early to plan backup arrangements.

Our clients use Zycus to run scenario planning for vendor exit, ensuring continuity under stress or failure conditions.

Enable Cross-Functional Collaboration

CPS 230 requirement:
Procurement must work closely with risk, legal, and IT to meet governance and reporting obligations.

How Zycus supports:

Role-based collaboration tools: Provide shared visibility to legal, audit, and IT teams across procurement lifecycles.
Automated intake-to-impact workflows: Powered by Merlin AI agents, enabling speed and compliance without compromising governance.

Zycus’ collaborative modules eliminate silos and help you demonstrate alignment across all three lines of defense.

Zycus is Your Partner for CPS 230 Readiness

CPS 230 represents a long-term shift, not a one-off compliance effort. With Zycus, you’re not just meeting a regulation—you’re building a future-ready procurement function.

Why choose Zycus:

20+ years of experience in global procurement automation
Trusted by Fortune 500 financial institutions across ANZ, SE Asia, and North America
ISO-certified and APRA-aware data governance and product development
Proven implementations in highly regulated environments

Take the Next Step

Zycus offers pre-configured CPS 230 assessment templates, supplier tiering logic, and reporting dashboards tailored for APRA-regulated entities.

Book a CPS 230 Readiness Demo with Zycus
Let us show you how we can streamline compliance and elevate your procurement’s strategic value.

Related Reads:

White Papers

CPO AI Procurement Transformation Cheat Sheet

Noopur Mhapankar

With extensive experience in B2B marketing, Noopur leads high-impact campaigns at Zycus. Her role centers on developing innovative marketing strategies, driving demand generation, and enhancing brand positioning to fuel business growth. She thrives on building powerful narratives that connect technology to real-world business outcomes, helping projects achieve operational excellence through digital transformation.