APRA CPS 230 para 59 (monitoring material arrangements)

The entity must monitor its material arrangements and make sure senior management gets reporting on them proportionate to the nature and use of the service. Monitoring must include regular assessment of (a) performance against agreed service levels; (b) how effective the controls over the provider risks are; and (c) whether both parties comply with the agreement. For limbs (a) and (c) only: Para 57 can exempt the arrangement (Attachment category provider on standardised terms or no formal agreement), and APRA can exempt it in writing under para 58.