Featured Product

    OSFI Consults on Approach to Address Operational Risk and Resilience

    July 06, 2021

    OSFI issued a letter to the federally regulated financial institutions seeking their views on certain aspects of its approach to the operational risk and resilience framework. One aspect OSFI is seeking views on is how it can position its perspective on operational risk and resilience within its principles-based guidance framework (including Guideline E-21). Views are also being sought on ways to address connections to related risks within the OSFI approach to operational risk management and operational resilience; the related risks include technology and cyber risks; third-party risk; model risk; and culture, compliance, and reputational risks. Stakeholders can submit comments until September 10, 2021.

    BCBS published guidance in March 2021 on operational risk and resilience and OSFI, as a BCBS member, had participated in the work that led to the publication of the revised principles for sound management of operational risk and the new principles for operational resilience. OSFI believes that the revisions to the principles for sound management of operational risk strengthen BCBS guidance on operational risk management while the principles of operational resilience introduce the concept of operational resilience. Earlier, on December 15, 2020, OSFI had concluded a consultation process on its September discussion paper titled "Developing financial sector resilience in a digital world," which highlighted certain aspects of operational resilience. OSFI views operational resilience as an important objective of operational risk management and believes that operational resilience encompasses a number of risk management practices and capabilities; these include articulating risk appetite and setting risk tolerances for operational risk; identifying and analyzing critical operations, interconnections, and interdependencies; using scenarios and testing to assess resilience capabilities; and preventing, responding, adapting, recovering and learning from operational disruptions. While the existing Guidelines and Advisories of OSFI cover many of these areas, there are opportunities to strengthen its guidance expectations to enhance operational resilience at financial institutions, including both deposit-taking institutions and insurance companies. As part of implementing any guidance on operational risk and resilience for financial institutions, OSFI will consider whether certain elements of this guidance could also be relevant to federally regulated pension plans.

     

    Related Links

    Keywords: Americas, Canada, Banking, Insurance, Pensions, Operational Risk, Operational Resilience, Guideline E-21, Third Party Risk, Cyber Risk, Model Risk, Technology Risk, OSFI

    Related Articles
    News

    EBA Updates Filing Rules for Supervisory Reporting

    The European Banking Authority (EBA) published version 5.1 of the filing rules for supervisory reporting.

    October 19, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Procedures for Collection of AnaCredit Data

    The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.

    October 19, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Procedures for Collection of AnaCredit Data

    The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.

    October 19, 2021 WebPage Regulatory News
    News

    EBA Publishes Standards on Disclosure of Investment Policy Under IFR

    The European Banking Authority (EBA) published the final draft regulatory technical standards on disclosure of investment policy by investment firms, under the Investment Firms Regulation (IFR).

    October 19, 2021 WebPage Regulatory News
    News

    APRA Finalizes Guidance for New Prudential Standard on Remuneration

    The Australian Prudential Regulation Authority (APRA) published the prudential practice guide CPG 511 to assist banks, insurers, and superannuation licensees in meeting requirements of CPS 511, the new prudential standard on remuneration.

    October 18, 2021 WebPage Regulatory News
    News

    OCC Updated LIBOR Self-Assessment Tool for Banks

    The Office of the Comptroller of the Currency (OCC) published a bulletin that provides an updated self-assessment tool for banks to evaluate their preparedness for cessation of the London Interbank Offered Rate (LIBOR).

    October 18, 2021 WebPage Regulatory News
    News

    TCFD Updates Guidance for Financial Disclosures on Climate Risk

    The Financial Stability Board (FSB) published a report that examines the progress made toward disclosures aligned with recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

    October 14, 2021 WebPage Regulatory News
    News

    BCBS Report Examines Progress on Adoption of Basel III Framework

    The Basel Committee on Banking Supervision (BCBS) published the progress report on adoption of the Basel III regulatory framework in member jurisdictions.

    October 14, 2021 WebPage Regulatory News
    News

    ACPR Implements Updates Related to DPM Version 3.1

    The French Prudential Supervisory Authority (ACPR) has implemented, in its information system, updates linked to the Data Point Model (DPM) version 3.1.

    October 14, 2021 WebPage Regulatory News
    News

    EBA Note Examines Transition Risks of Benchmark Rates

    The European Banking Authority (EBA) published a thematic note that aims to identify and raise awareness of the transition risks of benchmark rates, as the London Interbank Offered Rate (LIBOR) and the Euro Overnight Index Average (EONIA) are close to being phased out.

    October 14, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7571