The Swiss Monetary Market Supervisory Authority FINMA is publishing its steerage on governance and danger administration when utilizing synthetic intelligence (AI).
The steerage attracts consideration to the dangers related to the usage of AI and describes FINMA’s observations from ongoing supervision.
The fast adoption of AI in finance brings with it related dangers, which are sometimes troublesome to evaluate. These embrace operational dangers, specifically mannequin dangers (e.g. lack of robustness, correctness, explainability or bias), data-related dangers (e.g. knowledge safety, knowledge high quality, knowledge availability), IT and cyber dangers, growing third-party dependencies in addition to authorized and reputational dangers.
In the midst of its supervisory actions, FINMA has noticed that the majority monetary establishments are nonetheless within the early levels of improvement and that the corresponding governance and danger administration buildings are nonetheless being established. On this context, FINMA is drawing the supervised establishments’ consideration to the necessity for acceptable identification, evaluation, administration and monitoring of the dangers ensuing from the adoption of AI. It’s also offering data on corresponding measures that it has noticed in the middle of ongoing supervision.
That is supposed to strengthen the fame of the monetary centre and assist establishments to sustainably shield their enterprise fashions towards dangers in a continuously altering atmosphere by investing in a transparent enterprise technique, a powerful danger tradition and governance plus proactive danger administration.
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