NCFAs 6th Annual Summer Kickoff Rooftop Patio Mixer July 14

OFSI issues guidelines for Culture Risk Management and seeks for input by May 31, 2022

OFSI | Mar 15, 2022

OFSI culture risk management guidance - OFSI issues guidelines for Culture Risk Management and seeks for input by May 31, 2022The Office of the Superintendent of Financial Institutions (OSFI) examines the culture practices of federally regulated financial institutions (FRFIs) and how the risks created, perpetuated, or magnified by a FRFI’s culture can affect their safety and soundness.  OSFI plans to issue a principles-based, outcomes-focused culture risk management guideline for consultation in late 2022.

Proposed outcomes of culture risk management guidance

As part of its future guidance, OSFI will expect FRFIs to establish and maintain a robust approach to manage and oversee culture risks. OSFI is proposing six prudential outcomes that FRFIs should achieve to support effective culture risk management.

See:  OFSI Publishes Draft Guidelines on Technology and Cyber Risk Management

  • Leadership: Leaders, at all levels, consistently promote and reinforce the desired culture through their words, actions and decisions.
  • Compensation, People Management & Incentives: The FRFI acquires, develops, retains, compensates, and incentivizes executives, material risk-takers and all other employees to promote and reinforce its desired culture, effective culture risk management, and achieve sound financial and non-financial outcomes.
  • Accountability & Ownership: Individuals have a clear understanding of their roles and responsibilities, have capacity and autonomy to fulfill them, take ownership of their decisions and actions, and are held accountable for them.
  • Risk Mindsets & Behaviours: Risk mindsets and behaviours within the FRFI align with and support the structures in place to ensure financial and non-financial risks are effectively managed.
  • Group Dynamics & Decision-Making: The work environment enables individuals to feel safe to speak up, openly communicate and work together to make sound decisions and achieve financial and non-financial outcomes.
  • Resilience: Individuals are vigilant towards known and unknown threats, notice and effectively respond to problems and opportunities, and continuously learn, improve, and adapt to changing conditions.

See:  Culture: Why regulators should care about diversity and inclusion

OSFI is seeking comments on the following questions

  1. What are your views on OSFI’s proposed culture risk management outcomes? Are there other outcomes OSFI should consider?
  2. Which of the outcomes outlined above is your organization currently overseeing as part of its culture risk management? How is your organization measuring and assessing culture risks in these areas?
  3. Is your organization proactively disclosing culture risk management information as part of its published annual reports? Why or why not? Do you foresee any challenges if OSFI were to expect FRFIs to enhance existing annual reporting requirements to include this information?
  4. Does a FRFI’s size, nature, complexity, risk profile or various sub-cultures (e.g., differences between geographies, business units or functions) give rise to specific culture risk management issues that OSFI should consider?
  5. How do culture risks influence the way FRPPs are managed and administered? What are the benefits of similar outcomes-focused guidance for FRPPs?

Stakeholders can submit comments to Culture@osfi-bsif.gc.ca by May 31, 2022.

Continue to the full article --> here


NCFA Jan 2018 resize - OFSI issues guidelines for Culture Risk Management and seeks for input by May 31, 2022The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - OFSI issues guidelines for Culture Risk Management and seeks for input by May 31, 2022FF Logo 400 v3 - OFSI issues guidelines for Culture Risk Management and seeks for input by May 31, 2022community social impact - OFSI issues guidelines for Culture Risk Management and seeks for input by May 31, 2022

Support NCFA by Following us on Twitter!






NCFA Sign up for our newsletter - OFSI issues guidelines for Culture Risk Management and seeks for input by May 31, 2022



Not to be missed! Registration NOW OPEN!

Help us kickoff the Summer in style


NCFA Summer Kickoff Jul 14 2022 800 - OFSI issues guidelines for Culture Risk Management and seeks for input by May 31, 2022




 

Leave a Reply

Your email address will not be published. Required fields are marked *