Regulatory Notice on Culture Risk Management – letter
Information
Publication type
Letter
Category
Sound Business and Financial Practices
Date
Sector
Banks,
Foreign Bank Branches,
Life Insurance and Fraternal Companies,
Property and Casualty Companies,
Trust and Loan Companies
Table of contents
Today, OSFI released a regulatory notice on Culture Risk Management. It is effective immediately. It replaces and supersedes the draft Culture and Behaviour Risk Guideline we had previously published.
The regulatory notice reflects feedback from our public consultation on the draft guideline, adopting a flexible, principled-based approach and streamlining and simplifying expectations. In doing so, it focuses expectations around:
- Governance of culture risk.
- Fostering a desired culture.
- Enterprise-wide culture management.
We understand that institutions have unique cultures and there are varying approaches to managing culture risks. We expect that industry practices will evolve and mature over time. In lieu of a self-assessment tool, we have appended a set of questions for institutions to consider in their management of culture risks.