New guidance on managing third-party risk for Canada’s financial institutions
- Published: Wednesday, 26 April 2023 09:17
Canada’s Office of the Superintendent of Financial Institutions (OSFI) has published its final ‘Third-Party Risk Management Guideline’ (Guideline B-10) which sets out third party risk management expectations for Federally Regulated Financial Institutions (FRFIs).
FRFIs are increasingly relying on third parties in ways that can impact operations and financial resilience and OSFI expects FRFIs to manage these risks by adhering to the updated Guideline. It emphasizes governance and risk management programs and includes six new expected outcomes associated with effective third-party risk management.
OSFI first released a draft revised Guideline B-10 in April 2022. During a five-month consultation period, perspectives were sought from industry, third-party providers, and other members of the public on ways the draft Guideline could be improved. The summary of consultations, OSFI response to Draft Guideline B-10 consultation feedback – Third-party Risk Management, has helped inform the final Guideline B-10, Third-Party Risk Management Guideline.