0202-biz-wire-osfiPeter Routledge pushed back on criticism that his Office of the Superintendent of Financial Institutions (OSFI) is using new regulation to dictate the culture and values at Canadian banks and telling boards and executives how to manage the integrity and security of their financial institutions. These include foreign interference, third-party and cyber risk, and the security of physical and information assets. These non-financial risks also exist in the integrity of leaders and adherence to the laws in jurisdictions where the banks operate. Solvency and liquidity risks remain a key area of focus for OSFI but, taking a step back, it’s easy to see how non-financial risks also fall under the purview of a prudential regulator, Routledge said. Story continues“Experience teaches us that inadequate assessment of non-financial risks is usually the root cause of financial instability at an institution… And that financial risks often emerge as the final signals of that process,” he said.
