Difference between "Oversight" and "Ultimate responsibility"
in OSFI.Stress
So for ORSA the BoD has "oversight" of the program, but for Stress testing the BoD has "ultimate responsibility" of the program. What is the difference between these two terms?
Comments
Quoting the Stress Testing material:
Senior management is accountable for the program’s implementation, management and oversight and for ensuring that the institution has adequate plans to deal with remote but plausible stress scenarios
For the exam, I highly doubt you would have to actually describe how the roles of senior management differs in ORSA vs Stress Testing because in my view they do pretty much the same thing. I guess going back to the question - Ultimate responsibility covers oversight but also includes implementation and management. I would say that ORSA is more of at a higher level for senior management whereas it's more hands-on for stress testing.
@Staff-T1 , just to confirm, is Sr Mgmt synonymous with BoD?
Yes that's correct
Hi @Staff-T1 in Fall 2016 Q20 d), It says to describe the responsibilities of Sr Mgmt in a stress testing program. There is a question in the battlecards that distinguishes BoD (Sr Mgmt) v Mgmt (regular mgmt) responsibilities in stress-testing program. But the solution in the examiners report allowed answers that apply to both BoD and Mgmt, was wondering your thoughts on this? Its extremely confusing.
This leads me to think there is a distinction between Sr Mgmt and BoD, and the "Mgmt" in the Battlecards refer to Sr Mgmt? Please confirm.
For me, BoD is at the top, then senior management is next (sometimes the same as the BoD) then "regular" management. I would say the BoD is more involved in the higher level objectives whereas management is more on the day-to-day work. I think the fact that these terms are not well-defined is why the graders seemed to accept a wider range of answers. This is not something you should spend too much time worrying about as you can see from the sample - The CAS is pretty lenient