Own Risk & Solvency Assessment Under OSFI

The Own Risk and Solvency Assessment (ORSA) Under OSFI is a vital internal process for Canadian insurers to assess the adequacy of their risk management and current and future solvency position. This training event provides a clear roadmap to understanding and implementing an effective ORSA, guided by the principles set forth by the Office of the Superintendent of Financial Institutions (OSFI).

This CPE training event will cover the following essential topics:

• Comprehensive Risk Management Framework: We will explore how to establish and maintain a robust risk management framework. You will learn to identify, define, and assess all material risks—both quantifiable and non-quantifiable—that could impact your organization's ability to operate under normal and stressed conditions.
• Relating Risk to Capital: The training will detail the process of setting Internal Targets based on an internal assessment of all material risks. This includes understanding how to use stress and scenario testing as integral components to determine your own capital needs, ensuring you can withstand significant losses without falling below supervisory targets.
• Senior Management and Board Oversight: Discover the crucial role that Senior Management and the Board of Directors play in the ORSA process. We will discuss their responsibilities in overseeing the assessment, ensuring its integration with strategic planning, and fostering a sound risk management culture.
• Monitoring, Reporting, and Internal Controls: Learn the best practices for documenting the ORSA in a formal report. This includes how to provide clear, timely information to Senior Management about material risks, capital adequacy, and the effectiveness of internal controls, ensuring the process remains accurate and relevant.
• Objective Review and Continuous Improvement: We will cover the importance of conducting regular, objective reviews of the ORSA process. This ensures the integrity, accuracy, and reasonableness of your assessment, helping you adapt to evolving business environments and maintain a strong solvency position.

Upon completing this training, you will be able to:

• Understand the regulatory requirements for Own Risk and Solvency Assessment (ORSA) programs as outlined by OSFI.
• Develop a comprehensive risk management framework by identifying, assessing, and managing your organization's unique risks.
• Apply scenario analysis and stress testing techniques to evaluate the sufficiency of your capital resources under various conditions.
• Conduct a capital adequacy assessment to set appropriate Internal Targets and ensure long-term solvency.
• Articulate the purpose and key elements of the ORSA Summary Report for effective communication with stakeholders and regulators.
• Define the roles and responsibilities of the board of directors and senior management in providing oversight for the ORSA process.
• Integrate the ORSA process with your existing Enterprise Risk Management (ERM) program to create a unified approach to risk.
• Recognize how effective ORSA compliance improves strategic decision-making and enhances overall financial stability.

This CPE event offers a thorough exploration of Own Risk and Solvency Assessment (ORSA) programs, highlighting their crucial role in maintaining regulatory compliance and financial stability for insurance companies in Canada. Participants will gain a solid understanding of the practical steps required to align with the Office of the Superintendent of Financial Institutions (OSFI) expectations, including key regulations such as OSFI Guideline E-19: Own Risk and Solvency Assessment (ORSA) and related guidance on risk management and capital adequacy.

The program addresses all major components of ORSA, including the development of a strong risk management framework, scenario analysis, and robust capital adequacy assessments. We will walk through the structure and content of the ORSA Summary Report, discuss the essential roles of the board of directors and senior management, and review the regulatory landscape—including the importance of aligning with OSFI’s enterprise-wide risk management guidelines and compliance standards. By the end of this training, you’ll be equipped with the knowledge and tools needed to strengthen your organization’s risk oversight, meet Canadian regulatory requirements with confidence, and support lasting financial resilience. .