OSFI Revises Guidance on G-SIB Disclosure and Cyber Incident Reporting
The Office of the Superintendent of Financial Institutions (OSFI) published final revisions to its advisory on public disclosure requirements for global systemically important banks (G-SIBs). OSFI also published an updated cyber-security self-assessment template to help federally regulated financial institutions gauge and improve their current state of readiness in the face of emerging and expanding cyber threats. The self-assessment template covers criteria for reviewing third-party providers, including the providers of cloud services. It examines the capability of a financial institution to respond to a cyber incident in areas ranging from organization and resources, to how it manages threats, risks, and incidents, and allows an institution to rate each element on a scale from non-existent to continuous improvement. In a related development, OSFI updated the requirements governing how federally regulated financial institutions should disclose and report technology and cyber-security incidents to OSFI.
The updated advisory on technology and cyber-security incident reporting, which becomes effective from August 13, 2021, supports a coordinated and integrated response to technology and cyber-security incidents when they occur at federally regulated financial institutions. As updated, the federally regulated financial institutions must report a technology or cyber-security incident to the Technology Risk Division of OSFI as well as their Lead Supervisor at OSFI within 24 hours. Other changes to the advisory include a new "failure to report" section. In case a federally regulated financial institution does not report a cyber incident, it could be subject to increased supervisory oversight by OSFI, could be placed on a watchlist, or could be assigned one of the stages in the OSFI supervisory intervention approach, among other measures.
The revised advisory on G-SIB disclosures addresses changes to the disclosure requirements included in the updated assessment methodology of the Basel Committee on Banking Supervision, which was published in July 2018 and will take effect for the 2022 G-SIB assessment exercise; the key changes relate to the new Trading Volume indicator and the inclusion of insurance activities for certain existing G-SIB indicators. The revised advisory also provides guidance on the availability of publicly disclosed G-SIB indicators and the nature of qualitative information to accompany the disclosure requirements. This advisory applies to federally regulated banks with a Basel III leverage ratio exposure measure (including exposures arising from insurance subsidiaries) exceeding EUR 200 billion at financial year-end, or a bank that was included in the assessment sample by OSFI based on supervisory judgment.
Related Links
- Letter on Revised G-SIB Advisory
- Advisory on G-SIB Disclosures
- Cyber Security Self-Assessment
- Self-Assessment Template (XLSX)
- News Release on Cyber Incident Reporting
- Cyber Incident Reporting Advisory
Keywords: Americas, Canada, Banking, G-SIBs, Basel, Incident Reporting, Reporting, Cyber Risk, Regulatory Capital, Self-Assessment Template, OSFI
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Next Article
FSC Taiwan Issues Multiple Regulatory UpdatesRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
