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
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