Over the next three years, priorities Office of the Supervisor of Financial Institutions(OSFI) will include playing a larger role and exerting greater influence in public policy development, developing its own culture, engaging with stakeholders, updating its supervisory framework (by April 2024), and improving data collection methods.
at 2022-2025 Strategic Planthe regulator describes what it plans to do to change itself and outlines steps it will take to help increase public confidence in the country’s financial system.
Emerging risks
“While OSFI has learned lessons from past financial crises and past episodes of volatility, the fact remains that it must adapt to the emerging risks facing the financial sector. This transformative strategic plan will deliberately and systematically position OSFI to respond to new and continuing risks. It will also enhance the office’s ability to identify risks quickly and respond quickly and formally to the most pressing issues facing the Canadian financial system,” said the statement announcing the release of the plan.
OSFI adds that it needs a plan as its role is becoming more visible to Canadians. “As the agency’s engagement in policy matters intensifies, the strategic plan will help the office develop effective and responsive prudential responses to emerging and evolving risk areas facing the Canadian financial system.”
Data management and analytics
OSFI, which regulates more than 400 financial institutions and nearly 1,200 pension plans, has built its plan around several areas: its culture, risk, strategy and governance, bringing together key players, framework innovation, oversight framework, data management and analytics (its goal is to be recognized as being Focuses on data management and analytics). “Although our strategic plan primarily focuses on our transformation, continuing our distinguished tradition through the conduct of our day-to-day activities remains at the core of our business,” the regulator specifies.
Reliance on OSFI 2022-2025 Transformation Chartthe strategic plan details each component, sets the direction of the organization, identifies ongoing initiatives and defines the success criteria that will be used.
Complex and interrelated risks
OSFI places particular emphasis on risks, noting that “it is clear that the risks we face are now more complex and interconnected than ever before.” “Obviously the fluctuations will come from several identifiable sources,” OSFI continued, citing climate change and digitalization as major concerns. However, we can expect some uncertainty to emerge from other yet unknown sources. »
Among other initiatives, the regulator plans to create a new processing office. He also intends to establish the Office of the Chief Strategy Officer and the Office of the Risk Officer that is independent and well resourced to make risk-informed decisions that are delegated to the best people. In addition, he intends to proactively influence policy development and is considering establishing an independent, board-style external advisory board to review risk. Other measures include establishing a formal strategic stakeholder reporting function, expanding stakeholder tracking, and developing a concrete plan to engage key players for each strategic issue or risk.
More transparency
The supervisor and chief actuaries are also called upon to play a larger role, as OSFI wants to increase the odds of being more transparent with the public and stakeholders. Finally, it plans to create an analytics advisory board “to support the continuous improvement of our data management and analytics capabilities.”
” The Office of the Supervisor of Financial Institutions (OSFI) Strategic Plan 2022-2025 It represents the next step in our transformation. It not only sets out our goals and priorities for the next three years, but also the concrete steps we will take to continue building public confidence in the Canadian financial system. »
“Subtly charming problem solver. Extreme tv enthusiast. Web scholar. Evil beer expert. Music nerd. Food junkie.”