OSFI to Amend Guideline on Technology and Cyber Risk Management
The Office of the Superintendent of Financial Institutions (OSFI) published, in the form of a letter, its response to the feedback received on the draft Guideline B-13 on technology and cyber risk management. The response explains the changes made to the guideline as a result of the comments received and informs that the final guideline will be published in the coming weeks.
The Guideline B-13 on technology and cyber risk management will be applicable to all federally regulated financial institutions. The final guideline should be read from a risk-based perspective that allows federally regulated financial institutions to compete effectively and take full advantage of digital innovation, while maintaining sound technology risk management. OSFI received feedback from interested stakeholders during the three-month consultation on draft Guideline B-13 and implemented the following changes to the final Guideline B-13:
- OSFI removed several expectations and examples that were overly prescriptive in some areas and included fewer prescriptive expectations and examples, with added emphasis on approaching Guideline B-13 from a risk-based perspective.
- OSFI streamlined the final Guideline B-13 to focus on three core domains, instead of the earlier five domains: Governance and Risk Management, Technology Operations and Resilience, and Cyber Security. OSFI achieved this by moving third-party expectations to the revised draft Guideline B-10 (Third Party Risk Management) and by consolidating and streamlining Technology Operations and Resilience domain.
- OSFI clarified the definitions in final Guideline B-13 by advancing a single definition of “technology risk” that includes cyber risk. OSFI also noted that the Guideline B-13 definitions were informed by recognized standard-setting bodies.
- Respondents had identified expectations that were overlapping and confusing in some areas and OSFI clarified these in the final Guideline B-13, in addition to removing or consolidating expectations, where appropriate.
Related Link: Letter
Keywords: Americas, Canada, Banking, Insurance, Securities, Guideline B-13, Cyber Risk, Technology Risk, Regtech, Operational Resilience, OSFI
Related Articles
ISSB Sustainability Standards Expected to Become Global Baseline
The finalization of the two sustainability disclosure standards—IFRS S1 and IFRS S2—is expected to be a significant step forward in the harmonization of sustainability disclosures worldwide.
IOSCO, BIS, and FSB to Intensify Focus on Decentralized Finance
Decentralized finance (DeFi) is expected to increase in prominence, finding traction in use cases such as lending, trading, and investing, without the intermediation of traditional financial institutions.
BCBS Assesses NSFR and Large Exposures Rules in US
The Basel Committee on Banking Supervision (BCBS) published reports that assessed the overall implementation of the net stable funding ratio (NSFR) and the large exposures rules in the U.S.
Global Agencies Focus on ESG Data, Climate Litigation and Nature Risks
At the global level, supervisory efforts are increasingly focused on addressing climate risks via better quality data and innovative use of technologies such as generative artificial intelligence (AI) and blockchain.
ISSB Standards Shine Spotlight on Comparability of ESG Disclosures
The finalization of the IFRS sustainability disclosure standards in late June 2023 has brought to the forefront the themes of the harmonization of sustainability disclosures
EBA Issues Several Regulatory and Reporting Updates for Banks
The European Banking Authority (EBA) recently issued several regulatory publications impacting the banking sector.
BCBS Proposes to Revise Core Principles for Banking Supervision
The Basel Committee on Banking Supervision (BCBS) launched a consultation on revisions to the core principles for effective banking supervision, with the comment period ending on October 06, 2023.
US Proposes Final Basel Rules, Transition Period to Start in July 2025
The U.S. banking agencies (FDIC, FED, and OCC) recently proposed rules implementing the final Basel III reforms, also known as the Basel III Endgame.
FSB Report Outlines Next Steps for Climate Risk Roadmap
The Financial Stability Board (FSB) recently published the second annual progress report on the July 2021 roadmap to address climate-related financial risks.
EBA Plans on Ad-hoc ESG Data Collection and Climate Scenario Exercise
The recognition of climate change as a systemic risk to the global economy has further intensified regulatory and supervisory focus on monitoring of the environmental, social, and governance (ESG) risks.