Peter Routledge, Superintendent remarks at the 2025 Risk Management Webcast

Thank you all for joining us today. I hope our discussions helped identify some of the top risks we face and the strategies we are putting forward together to address them. Thank you as well to my colleagues for their thoughtful presentations and insights.

OSFI’s Perspective on the Financial Risk Environment

While the Canadian financial system remains resilient— the underlying risk environment has become more complex and more volatile. Economic uncertainty, geopolitical instability, and natural catastrophe disasters continue. Meanwhile, systemic vulnerabilities remain as cyber threats, misinformation, and new technologies persist while the financial risk environment continues to evolve.

At OSFI, we know we must respond—quickly and thoughtfully—to keep pace with the risk environment. That means enhancing our oversight and being proactive and reinforcing our core principles.

Highlights from the 2025–2026 Annual Risk Outlook

Our 2025–2026 ARO identifies four top risks; integrity and security risks, Wholesale credit risks, funding and liquidity risks, and real estate secured lending risks, which we explored throughout the day.

1. Integrity and security risks – Cyber threats, foreign interference, and third-party vulnerabilities are systemic concerns. These risks strike at the core of public confidence and institutional functionality.
2. Wholesale credit risks – The credit environment is tightening. Leveraged borrowers and commercial exposures are increasingly vulnerable.
3. Funding and liquidity risks – Market volatility and shifts in depositor behavior challenge liquidity management.
4. Real estate secured lending (RESL) risks – High household debt and elevated mortgage costs pose persistent vulnerabilities. While housing markets have adjusted somewhat, the underlying debt dynamics remain concerning.

The Role of OSFI and financial institutions

OSFI plays an important role in ensuring the resilience of the Canadian financial system: implementing regulatory and supervisory frameworks that keep pace with evolving threats, enabling timely information sharing, and not hesitating to take action and early intervention when conditions warrant. Financial institutions also have an important role to play. Ultimately, boards and senior management are accountable for the risk – the risk appetite and resilience (financial and operational) of their institutions. That accountability must be supported by effective governance and a culture that encourages challenge, candour, and timely escalation.

As we conclude, I want to thank everyone who contributed to today’s event. Thank you to OSFI staff and leadership for organizing a rich, informative agenda. And thank you to our stakeholders and partners for sharing your perspectives. Risk management is not static. It evolves with the world around us. At the end of the day, we all want the same thing: a financial system that Canadians can rely on.

Thank you again for your engagement today.

I look forward to continuing this conversation with you in the future.