In a speech, Canada's Office of the Superintendent of Financial Institutions (OSFI) Superintendent Peter Routledge set out OSFI’s 2025 focus on integrity and security threats, pointing to geopolitical instability, fast-moving technologies and third-party reliance as drivers of greater exposure to cyber-attacks, state-linked interference and integrity-related risks. He noted these threats can lead to financial losses and reputational damage and that OSFI is increasing its own measures and resourcing to address the same risk environment. On artificial intelligence, Routledge described AI as a potential productivity and efficiency tool, while also raising internal risks such as model, operational, legal and reputational risk and enabling malicious actors to scale cyber threats, fraud and geopolitical interference. He signalled that OSFI expects institutions to adopt AI responsibly with governance and controls keeping pace with deployment, and referenced the EDGE principles developed through the Financial Industry Forum on Artificial Intelligence (Explainability, Data, Governance and Ethics). Internally, OSFI is expanding its use of AI in supervision and operations, with an approach centred on accountability, explainability and data security. On climate risk, he reiterated that Guideline B-15, the Standardized Climate Scenario Exercise and Climate Risk Returns are intended to build institutions’ capacity to quantify climate-related financial risks, including through standardized data collection. He highlighted gaps such as limited prior experience with physical climate scenario analysis and limited geocoding of exposures outside the property and casualty sector, and said OSFI is increasingly viewing catastrophic risk as encompassing both climate-related and earthquake risks. Ongoing engagement is expected to continue through the second Financial Industry Forum on Artificial Intelligence and OSFI’s international regulatory and standard-setting collaboration.
Office of the Superintendent of Financial Institutions 2025-11-24
Canada's Office of the Superintendent of Financial Institutions highlights integrity and security threats as a 2025 supervisory priority and outlines EDGE principles for responsible AI
In a speech, OSFI Superintendent Peter Routledge outlined the 2025 focus on integrity and security threats, emphasizing geopolitical instability, technological advancements, and third-party reliance as key risk drivers. He highlighted AI's dual role as a productivity tool and a risk factor, urging responsible adoption with robust governance. On climate risk, Routledge reiterated the importance of Guideline B-15 and other measures to enhance institutions' capacity to quantify climate-related financial risks.