To illustrate the difference between a vulnerability and a risk, imagine a bridge with fractures in its concrete supports. That’s the vulnerability. The risk is that the bridge could collapse if a trigger event, such as an earthquake, shook its foundations. Focusing explicitly on vulnerabilities in the Canadian financial system allows us to highlight where the fragilities lie and how they are evolving.
We identify a range of vulnerabilities and consider them in relation to a wide variety of financial institutions, markets, end-users and payment systems (Table 1). 5  3  We share our assessments of systemic vulnerabilities and risks with our federal regulatory partners on the Senior Advisory Committee (SAC).