OSFI.SUPFRM

Question 1

main responsibility of OSFI relationship manager

Answer 1

main point of contact between FRFI and OSFI
→ responsible for maintaining an up-to-date risk assessment of the FRFI
Recall:
FRFI = Federally Regulated Financial Institution
OSFI = Office of the Superintendent of Financial Institutions

Question 2

key principles: risk assessment (3/7)

Answer 2

• identify material risks
• should be forward-looking & allow for early intervention
• use sound predictive judgment
• understand risk drivers
• differentiate between inherent risks & management of those risks
• dynamic adjustment
• assess whole institution by calculation a CRR (Composite Risk Rating)

Question 3

primary concepts: risk assessment (3/9)

Answer 3

• Significant activities
• Inherent risk
• Quality of risk mangement
• NR (net risk)
• importance & ONR (Overall Net Risk)
• Earnings
• Capital
• Liquidity
• risk matrix & CRR (Composite Risk Rating)