The Office of the Superintendent of Financial Institutions (OSFI) has launched a three-month consultation stemming from a paper that looks at risks arising from rapid technological advancement and digitalization and the impact these trends have on the Canadian financial sector.
This consultation dealing with the paper Developing financial sector resilience in a digital world, supports OSFI's strategic objective to ensure that federally regulated financial institutions and pension plans are better prepared to identify and develop resilience to non-financial risks before they negatively affect their financial condition. While technology is a key enabler for financial institutions and financial consumers, its widespread use and rapid adoption can pose risks in many different areas of the business if not properly understood and managed.
Need to understand how technology is used
Understanding the financial sector's use of technology and how technology risks are managed is central to this consultation. OSFI's discussion paper focuses on the risk areas of cyber security, advanced analytics (artificial intelligence and machine learning), and the use of third party services such as cloud computing.
OSFI is seeking feedback from a wide range of stakeholders including financial sector participants, technology experts and academics. Their input will help guide OSFI's regulatory and supervisory approaches to technology risks that meet our mandate of protecting depositors, policyholders and private pension plan beneficiaries while allowing institutions to compete and take risks.
