The Office of the Superintendent of Financial Institutions says its regular risk outlook update highlights frontier AI’s potential to amplify cyber, technology, third-party and reputational risks in Canada’s financial system.
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The Office of the Superintendent of Financial Institutions says it has identified new pressures for Canada’s financial system in its regular update to its annual risk outlook, following the report’s release in the spring.
In its update, OSFI focused on how frontier artificial intelligence can amplify cyber, technology, third-party and reputational risks. It said that as AI capabilities advance, institutions need to strengthen governance, controls and testing.
OSFI superintendent Peter Routledge said resilience is a competitive advantage in an era of advancing AI capabilities, and that financial institutions can position themselves to thrive by using AI responsibly while also managing cyber, technology and third-party risks.
OSFI’s comments were delivered as part of the federal banking regulator’s risk outlook update.
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