OSFI.CORPGOV

Question 1

define ‘corporate governance’

Answer 1

set of relationships between: ( Board of Directors, management, shareholders, other stakeholders)

Question 2

characteristics of good corporate governance

Answer 2

• incentivizes good behaviour (i.e. advances company & shareholder interests)
• enables monitoring of operations & performance

Question 3

what items should a risk appetite framework contain (3)

Answer 3

RAS: risk appetite statement
RL: risk limits
RR: roles / responsibilities of those implementing risk appetite framework

Question 4

provide a general description of a risk appetite statement

Answer 4

reflects LEVEL of risk, and TYPE of risk FRFI is willing to accept to meet business objectives

Question 5

key features of the risk appetite statement (4)

Answer 5

• relate to (short, long)-term strategies
• includes qualitative / quantitative measures of risk
• forward-looking
• consider normal and stressed scenarios