The regulator that troubleshoots first, asks questions later

Canada’s bank watchdog aims to intervene early to tackle burgeoning risks, even at the expense of “perfect” regulatory decisions, explains risk chief

A regulator’s job is to examine the risk appetite of banks. So why shouldn’t the regulator also set its own risk appetite?

It’s a question that Canada’s Office of the Superintendent of Financial Institutions has answered. On May 11, it published its new risk appetite statement.

The document “puts a corporate-wide or organisation-wide hat on the way we manage risk and allocate resources”, explains Angie Radiskovic, assistant superintendent and chief strategy and risk officer at Osfi.

Some