US Treasury publishes AI risk Guidebook for financial institutions

The US Treasury has published several documents designed for the US financial services sector that suggest a structured approach to managing AI risks in operations and policy (see subheading ‘Resources and Downloads’ towards the bottom of the link). The CRI Financial Services AI Risk Management Framework (FS AI RMF) comes with a Guidebook [.docx] which gives details of the framework, developed by a collaboration among more than 100 financial institutions and industry organisations, with input from regulators and technical bodies.

The objective of the FS AI RMF is to help financial institutions identify, evaluate, manage, and govern the risks associated with AI systems and let firms continue adopting AI technologies responsibly.

Sector-specific framework

AI systems introduce risks that existing technology governance frameworks don’t address. Risks include algorithmic bias, limited transparency in decision processes, cyber vulnerabilities, and complex dependencies between systems and data. LLMs create concerns because their behaviour can be difficult to i...