Office of the Superintendent of Financial Institutions
OTTAWA ─ June 29, 2016 ─ Office of the Superintendent of Financial Institutions Canada
The Office of the Superintendent of Financial Institutions (OSFI) today released a final version of the Operational Risk Management Guideline (Guideline E-21) following a public consultations process. The guideline outlines OSFI’s expectations for the management of operational risk and is applicable to all federally regulated financial institutions (FRFIs).
OSFI considers effective operational risk management essential to the safety and soundness of an institution and expects all FRFIs to have a framework for operational risk management. The guideline formalizes OSFI’s operational risk management expectations for FRFIs and outlines principles for effective operational risk management. The guideline promotes industry best practices and reflects international standards in operational risk management. It is principles-based so that the expectations can be scaled to reflect the nature and complexity of institutions in the course of supervisory oversight.
“Federally regulated financial institutions have made significant improvements in their operational risk management practices over the last several years,” said Deputy Superintendent Mark Zelmer. “This guideline supports continual improvement in their operational risk management activities.”
The Office of the Superintendent of Financial Institutions (OSFI) is an independent agency of the Government of Canada, established in 1987, to protect depositors, policyholders, financial institution creditors and pension plan members, while allowing financial institutions to compete and take reasonable risks.
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