On September 15, 2020, the Office of the Superintendent of Financial Institutions (OSFI) released a discussion paper, Developing financial sector resilience in a digital world with the aim to enhance Federally Regulated Financial Institutions (FRFIs) preparedness and resilience to non-financial risk facilitated by FinTechs, globalization, and other external factors.
The discussion paper outlines some of OSFI recent work and invites stakeholders to provide their feedback on various subjects regarding technology and their related risks, namely:
Operational risk and resilience.
Technology risk and the role of prudential regulators with respect to technology and data risk management.
Core principles to guide future regulations in relation to three priority areas: cyber security, advanced analytics (i.e. Artificial Intelligence (AI) and Machine Learning (ML) models), and the technology third party ecosystem. Three priority risk areas that FRFIs and regulators should better understand and mitigate with an emphasis of sound data management and governance.
Interested parties are invited to submit their responses by December 15, 2020.
The discussion paper can be found here: