By RiskThinking Team
OSFI's Guideline B-15 sets clear expectations for federally regulated financial institutions in Canada: climate risk considerations built into governance and strategy, climate scenario analysis, stress testing, and disclosure. That is not a future requirement. It is the current standard against which FRFIs are already being assessed.
RiskThinking.AI is partnering with Capgemini and Watershed to help Canadian FRFIs meet it. Capgemini brings enterprise-scale implementation and data and AI capabilities; Watershed brings ESG measurement, reporting, and audit-grade sustainability analytics; RiskThinking.AI brings the climate risk modelling — physical hazard analysis, scenario testing, and tail-risk quantification built to hold up under regulatory scrutiny, not just internal review.
This builds on work already in production. OSFI selected RiskThinking.AI to supply climate risk data, through the VELO® platform, for hundreds of financial institutions completing the 2024 Standardized Climate Scenario Exercise, run jointly with L'Autorité des marchés financiers. VELO provided flood data for that exercise; the offering now extends to every major climate hazard relevant to Guideline B-15 for 2025.
"Our partnership with Capgemini and riskthinking.AI aligns our complementary strengths — combining Watershed's leading ESG management capabilities with advanced climate risk modeling and enterprise-scale implementation expertise. Together, we're uniquely positioned to help Canadian financial institutions not only meet OSFI's B-15 requirements, but transform climate risk management into a strategic advantage."
— Kristin Thayer, Head of Partnerships, Watershed
The regulatory floor is set. The question for FRFIs now is whether their climate risk data and modelling can withstand the scrutiny B-15 requires.
Learn more here: https://lnkd.in/eTj274R2