Overview of CDIC Divisions and Departments

The four divisions of CDIC are Insurance and Risk Assessment, Complex Resolutions, Finance and Administration, and Corporate Affairs. In addition, the Audit and Consulting Services Department reports to the Audit Committee and the President and CEO.

Executive

As the head of CDIC’s Executive, the President and CEO leads CDIC and is responsible for overseeing the effective functioning of the business and affairs of CDIC. The President and CEO ensures that CDIC employees act in a manner consistent with the policies and directions of the Board, in fulfilling CDIC’s objectives.

The Executive also includes the Vice-Presidents of each division, who are accountable to the President and CEO for directing the day-to-day operational functions of their respective divisions. The holders of the offices of Corporate Secretary, General Counsel, and Chief Financial Officer (CFO) are also members of the Executive; currently, the offices of Corporate Secretary and General Counsel are held by the Vice-President, Corporate Affairs and the office of the CFO is held by the Vice-President, Finance and Administration.

Read brief biographies of CDIC’s Executive, including CDIC’s: President and CEO; Senior Vice President, Insurance and Risk; Vice President, Finance and Administration and CFO; and Vice President, Corporate Affairs, General Counsel and Corporate Secretary. You can also access their travel and hospitality expense reports.

Insurance and Risk Assessment Division

Insurance and Risk Assessment (IRA) is comprised of six departments:

• The Information and Methodology Department (I&M) is responsible for the collection, maintenance and delivery (including the production of standardized and ad hoc reports) of all information required for the assessment of risk posed by CDIC member institutions. I&M is responsible for ensuring that CDIC’s needs, in terms of member institution financial information, are met through active participation in the inter-agency Financial Information Committee (FIC) which is a subcommittee of the Financial Institutions Supervisory Committee (FISC). The development and maintenance of intervention systems required to support IRA functions are the shared responsibility of the IRA Division and the Information Systems Department within the Finance and Administration Division. The I&M Department is responsible for ensuring that the Division’s ongoing needs are met by existing and new systems. I&M directs the project team responsible for completing the upgrading or development of IRA systems and monitors the allocated budget. I&M employees have specific assigned responsibilities in the event of a payout of a member institution.
• The Risk Assessment Department is responsible for the analysis and monitoring of the risk posed by CDIC members, peer groups and the membership as a whole. It also conducts more rigorous monitoring for higher risk members and undertakes appropriate intervention activities, including special examinations, as required. It is responsible for assisting the Senior Vice-President, IRA in addressing and implementing failure resolutions. The Department’s staff meet regularly with federal and provincial regulators to discuss issues arising from the annual examinations of member institutions and CDIC’s risk assessments. The Risk Assessment Department actively participates in FIC. The Department is also responsible for managing the application process of provincial members. Risk Assessment employees have specific assigned responsibilities in the event of a member institution failure.
• The Risk Assessment and Intervention Department (RAI) is responsible for the payout of deposit insurance claims and for conducting preparatory examinations of member institutions, including the review of their deposit liabilities and the analysis of their information and accounting systems. RAI is also responsible for the coordination of CDIC’s contingency planning activities. It monitors the winding-up of insolvent member institutions where CDIC has an outstanding claim or loan, particularly the realization of assets to ensure that the Corporation optimizes its recoveries. As part of this work, RAI contributes to implementing CDIC’s policy to review the cause of each member institution failure. CDIC will ensure that appropriate action is taken—either directly or through liquidators, or both—in circumstances where CDIC has suffered damages and there is information which raises a reasonable case of negligence, wilful misconduct, or wrongdoing by directors, officers, auditors or other relevant parties. RAI employees are also responsible for the analysis and monitoring of a small portfolio of member institutions.
• The Insurance Department is responsible for monitoring member institution compliance with the terms and conditions of the Policy of Deposit Insurance; for developing and updating, as well as administering, the filings by members under the Differential Premiums By-law and the classification of member institutions into premium categories on an annual basis; and, for overseeing premium administration generally, including administration of the Return of Insured Deposits. The Department also has responsibility for the development and updating of the Deposit Insurance Information By-law that prescribes the representations members may make about who is a member and what is an eligible deposit. The Department is responsible for administering the process for applications to accept deposits without being a member institution (an opting-out process), as well as the process for cancellation of a member’s policy of deposit insurance. And, finally, the Department has the responsibility of making each new member institution aware of its compliance requirements toward CDIC. Insurance Department employees have responsibility for CDIC consultation with member institutions and the by-law amendment process for those by-laws that have an impact on member institutions.
• The Policy and International Department is responsible for assessing, developing and proposing public policies that concern the mandate and operations of CDIC. It conducts innovative analysis and research on emerging financial sector policy issues. The Department is also responsible for coordinating CDIC’s international activities, providing assistance to countries wishing to establish or enhance their deposit insurance systems, and it supports the development of guidance for effective deposit insurance systems.

Complex Resolution Division

The Complex Resolution Division (CRD) was established as a dedicated division of CDIC that works alongside other CDIC departments to ensure that the Corporation has the operational capacity to effectively implement resolution methods for large complex members. CDIC’s large member institutions are complex, international and interconnected Financial Institutions (“FIs”). A disorderly failure, through financial distress or other risk factors, could impact the stability of Canada’s financial system. In this regard it will be of critical importance that CDIC undertake comprehensive planning and preparedness activities in the event of a large member failure.

The Complex Resolution Division has three main areas of focus:

• Development and maintenance of resolution plans for large complex members. Resolution plans serve as a guide to the effective use of CDIC’s powers to resolve a large member in the event that the member’s own recovery measures are not feasible or have proven ineffective. The analysis conducted by CRD, in conjunction with Canada’s other financial safety-net agencies (OSFI, the Bank of Canada, the Department of Finance), is aimed at improving the resolvability of large member institutions and the broader stability of the financial system. Resolution planning is an evolving process and is integrated alongside other financial sector supervisory priorities.
• Enhance CDIC preparedness for large bank resolution. CRD works alongside other CDIC departments to enhance operational readiness for a large member failure. Important features of this work involve the coordination of communication, funding and capacity enhancements and developing appropriate strategies based on the resolution tools and powers available to CDIC. These strategies are developed in collaboration with Canada’s financial safety net agencies to strengthen Canada’s resolution regime.
• Advance crisis management co-ordination activities with international resolution counterparts and liaise with important domestic resolution entities that may be impacted in resolution activities. CRD works along-side other financial safety net agencies to ensure that CDIC has compatible methods and powers to coordinate the resolution of member institutions with both domestic and cross-border operations.

Finance and Administration Division (and CFO)

The Finance and Administration Division is comprised of four main functions:

• Finance Department is responsible for the accounting and financial planning activities of the Corporation including CDIC’s annual financial statements and its financial plans and budgets. To that end, it is responsible for establishing effective financial recording, reporting and control processes, and for ensuring that the financial processes of the Corporation are arranged in a manner designed to provide the accounting, financial, and internal control advice and general service required to support operational activities. The Department’s responsibilities with respect to financial planning centre on the requirements of the Financial Administration Act for annual submission of a five-year corporate plan setting the direction of the Corporation and providing forecasts of future operating results and major financing requirements.
• Information Systems covers key disciplines in information system operations and development in the areas of application development for core mandate applications, technical support and operations for computer equipment and data center operations, IT security responsibilities for safeguarding CDIC systems and information assets, support and maintenance of corporate applications such as HR and Finance, management of paper and electronic records and project management of initiatives that are prioritized through the Information Systems Steering Committee. The Information Systems department develops a 5-year strategic plan to map-out its strategic objectives to deliver systems to support the core mandate of CDIC and a tactical plan to prioritize the work to meet these strategic objectives. To maintain systems and resources at a level that can expand and respond in a timely manner to support intervention needs, the Information Systems department has established relationships with key providers and participates in business-lead simulations and business continuity exercises.
• The Treasury function incorporates the investment of surplus funds and borrowing as needed to fund operations. Treasury operations are undertaken within Board-approved Financial Risk Policies that authorize management of CDIC’s funds in various securities to generate investment income. The Corporation’s liquidity requirements are satisfied first through CDIC’s financial resources, second through short-term loans from the Consolidated Revenue Fund and third, if required, through the capital markets. The Treasury function also includes Asset/Liability Management and its committee (ALCO), and the Risk Management Unit which are chaired by the Controller.
• The Corporate Strategy, Project Management and Reporting Department coordinates the strategic management and reporting processes of the Corporation. Its key responsibilities include developing, writing, and producing the Corporate Plan and Corporate Plan Summary, as well as the Annual Report, corporate performance reporting, and the provision of project management services and resources. This area is also responsible for facilities management and business continuity management. The Department is responsible for the Corporate Risk function and develops the corporate view about CDIC’s risks and risk management by working with CDIC’s Enterprise Risk Management Committee. The Committee, comprised of CDIC’s executive management team and other selected employees. agrees on: CDIC’s significant risks; the environment within which each risk is managed; CDIC’s exposure to each risk (giving consideration to CDIC’s risk management practices and controls); the trend of each risk; any initiatives related to the management of each risk; and policies to be proposed to the Audit Committee and ultimately the Board of Directors governing the management of each risk. Management’s assessments of CDIC’s risks and of any changes required to Board risk policies are regularly reported to and considered by the Audit Committee, and reported annually to the Board. CDIC’s corporate risk management is a key input into of CDIC’s corporate planning process. Progress in implementing risk-related initiatives is reported to the Audit Committee and to the Board of Directors in the Corporate Scorecard that is provided to the Board at each regular Board meeting.

The Vice-President, Finance and Administration is also the CFO and is responsible for overseeing the financial activity of the Corporation. The Vice-President is accountable for the direction, management and control of strategic planning and reporting, the accounting, finance and treasury functions, as well as the functions related to information management systems, records management and facility management.

Corporate Affairs Division (and General Counsel and Corporate Secretary)

The Corporate Affairs Division comprises four main functions:

• The Communications and Public Affairs Department includes responsibility for internal and external communications, public relations and linguistic services. It manages a multi-year public awareness program about deposit insurance. Communications and Public Affairs also manages CDIC’s website, the toll-free information line and information dissemination on deposit insurance. It also provides call centre inquiry services on a cost-recovery basis for the Financial Consumer Agency of Canada and the Office of the Superintendent of Financial Institutions.
• Human Resources manages and administers all aspects of CDIC’s human resources function, including recruitment, succession planning, learning and development, employee relations and compensation. CDIC’s approach to managing human resources includes: maintaining an organizational climate that attracts and retains employees who have excellent skills, who conduct business with the highest ethical standards and who are committed to the mandate, strategy and operations of CDIC. The importance of maintaining a high calibre work force and a positive work environment is a fundamental principle which is reflected in CDIC’s governance and management practices, including its values and human resource management policies.
• The General Counsel and Legal Services Department provide legal advice and support to the Corporation. A major focus is supporting the primary functions of insurance and risk management, and claims and recoveries. At the same time, the Legal Services Department supports CDIC’s operational infrastructure, its contractual requirements and its legal and institutional framework by monitoring compliance with key legislation and overseeing amendments to the CDIC Act and its By-laws. (The office of General Counsel is currently held by the Vice-President, Corporate Affairs.)
• The Corporate Secretariat supports the Board of Directors in carrying out its roles and responsibilities, and provides assistance to the Chairperson in ensuring the Board is organized properly, functions effectively and meets its obligations and responsibilities. (The office of Corporate Secretary is currently held by the Vice-President, Corporate Affairs.)

Audit and Consulting Services Department

CDIC’s Audit and Consulting Services Department fulfills the Corporation’s internal audit function. The Department is responsible for assessing, on an ongoing basis, the Corporation’s compliance with the requirements of the Financial Administration Act. Specifically, it determines if CDIC keeps books and records, and maintains systems and practices, that provide assurance that:

• assets are safeguarded and controlled
• transactions are in accordance with specified authorities
• resources are managed economically and efficiently
• operations are carried out effectively

The Department prepares a risk-based Strategic and Operational Plan annually, which is approved by the Audit Committee of the Board. At year end, the Audit Committee reviews performance against the Plan. Audit and Consulting Services issues reports on each area reviewed or audited and presents these reports along with an action matrix outlining management’s plan of action to the Audit Committee. The Department performs follow-up exercises on actions taken to address any recommendations, and provides regular reports on the status of management’s action plans to the Audit Committee.

Audit and Consulting Services participates on information systems development teams, making recommendations throughout the development process as appropriate.

At year end, Audit and Consulting Services works closely with the external auditor—the Office of the Auditor General—preparing reports on accounting systems and compliance with authorities. The Department also helps coordinate any special examination of the Corporation that is undertaken by the Office of the Auditor General.