OSFI.SupFrm

Question 1

main responsibility of OSFI relationship manager

Answer 1

main point of contract between FRFI and OSFI. responsible for maintaining an up to date risk assessment of FRFI (Federally Regulated Financial Institution)

Question 2

key principles of risk assessment

Answer 2

APM- F trippleD
- Assessment of whole institution
- Predictive, sound judgement
- Material risk focus
- Forward looking
- Drivers of risk undertsnading
- Differentiate inherent risks and risk management
- Dynamic adjustments

Question 3

9 primary concepts of risk assessment

Answer 3

uses many concepts to enable a common approach to RA across FRFIs
- significant activities
- inherent risk
- quality of RM
- NR (net risk)
- importance and ONR (overall net risk)
- Earnings
- Capital
- Liquidity
- risk matrix and CRR (Composite Risk Rating)

Question 4

what is inherent risk? what are the 6 categories of inherent risk?

Answer 4

the probability of material loss due to exposures to, and uncertainty arising from current and future events
SIRCOM
Strategic/Insurance/Regulatory/Credit/Operational/Market

Question 5

describe significant activities

Answer 5

LOB fundamental to FRFI’s business model and its ability to meet overall business objectives

Question 6

describe quality of risk management, the 2 levels of control OSFI uses to assess it

Answer 6

1) operational management
- activities on a daily basis
2) oversight
- of finance, compliance, actuarial…

Question 7

describe NR (net risk)

Answer 7

inherent risk after mitigation by QRM
- net risk of significant activity determined based on judgement on inherent risk and quality of risk management

Question 8

describe risk matrix, CRR (composite risk rating)

Answer 8

• risk matrix: records assessment of significant activities and risks
• CRR: culmination of all assessments 所有的集合

Question 9

what is OSFI’s process to guide FRFI supervisory work?

Answer 9

• planning
• executing and update risk profile
• reporting and intervention