OSFI E-23 for AI Systems: From Governance Requirements to Accountable Gates, Enforceable Controls and Reconstructable Evidence - A Practitioner's Handbook for Canadian Financial Institutions

A guideline does not govern a model. It describes what an institution should be able to show about one, and leaves the institution to decide how.

Guideline E-23, Model Risk Management (2027), from the Office of the Superintendent of Financial Institutions (OSFI), takes effect on 1 May 2027 for all federally regulated financial institutions, foreign bank and foreign insurance company branches included. Its definition of a model names AI and machine learning methods, and every model whose inhe...