OSFI supervises financial institutions in accordance with its Supervisory Framework, first introduced in 1999 and updated in 2010 by OSFI’s Supervisory Practices Division. The Framework describes the principles, concepts, and core process that OSFI uses to assess the safety and soundness of financial institutions, and identify issues or areas of concern early in order that timely corrective actions may be taken, when needed. Copies of the updated Framework were sent to the supervised institutions.
Composite Risk Rating and Assessment Criteria
OSFI shares its assessment of an institution's overall risk profile or "Composite Risk Rating" ("CRR") with the institution. The determination of the CRR and underlying ratings are guided by Assessment Criteria, which were developed when the Framework was first introduced in 1999 with input from supervised industries through their associations.