OSFI releases annual risk outlook 2024-2025

OSFI's Annual Risk Outlook 2024-25 identifies key risks and outlines regulatory responses

OSFI releases annual risk outlook 2024-2025

The Office of the Superintendent of Financial Institutions (OSFI) has released its Annual Risk Outlook (ARO) for 2024-2025.

This publication highlights the most significant risks OSFI perceives as threats to Canada's financial system in the coming year and explains how the institution will address these risks.

The Annual Risk Outlook for 2024-25 identifies the following key risks:

  • Real estate secured lending and mortgage risks
  • Wholesale credit risks
  • Funding and liquidity risks
  • Integrity, security, and foreign interference

While this list is not exhaustive, it points out the most critical risks according to OSFI. The institution pledges to maintain transparency about its supervisory and regulatory actions in response to these and other risks.

Institutions and pension plans are encouraged to review the document thoroughly, as it outlines OSFI's priorities for the 2024-2025 fiscal year.

“Our third Annual Risk Outlook highlights the significant risks facing Canada's financial system and informs Canadians about our regulatory and supervisory responses to these risks,” stated Peter Routledge, superintendent of Financial Institutions.

 “This year, we are taking a more focused approach, highlighting four significant risks."