710 Model Risk The risk of adverse financial (e.g., capital, losses, revenue) and reputational consequences arising from the design, development, implementation and/or use of a model. It can originate from, among other things, inappropriate specification; incorrect parameter estimates; flawed hypotheses and/or assumptions; mathematical computation errors; inaccurate, inappropriate, or incomplete data; inappropriate, improper or unintended usage;
Today, the Office of the Superintendent of Financial Institutions (OSFI) launched its inaugural pilot of quarterly release of guidance. Adopting quarterly releases aims to ensure predictability by issuing guidance on four set dates throughout the year. The guidance released address critical risks identified in the Annual Risk Outlook: final Guideline E-21 on Operational Risk and
Executive Summary The Strategic Counsel (TSC) is pleased to submit this report to the Office of the Superintendent of Financial Institutions (OSFI) detailing the findings from the 2023-24 Financial Institutions Survey (FIS). Background and Objectives OSFI is the primary regulator and supervisor of federally regulated financial institutions and federally administered pension plans in Canada. To
As part of adopting the Basel III reforms and International Financial Reporting Standard 17 in fiscal 2023, we've enhanced and aligned assurance expectations on the capital, leverage and liquidity returns for banks and insurers. For banks, the scope now includes liquidity metrics in addition to capital and leverage metrics. For insurers, the scope now includes
Today, the Office of the Superintendent of Financial Institutions (OSFI) announced a one-year delay to the increase of the capital floor level (or “output floor”). Canada concluded its implementation of Basel III 2017 reforms in early 2024 and established a three-year phase-in of the capital floor consistent with the timetable set by the Basel Committee
