The Monetary Authority of Singapore has worked with 24 financial institutions, alongside other industry partners, to develop a toolkit for managing Artificial Intelligence risks across the financial sector. The toolkit marks the conclusion of phase two of Project MindForge and is intended to help financial institutions manage risks linked to traditional Artificial Intelligence, generative Artificial Intelligence and emerging agentic Artificial Intelligence technologies.
At the centre of the toolkit is an Artificial Intelligence Risk Management Operationalisation Handbook, which provides detailed, practical guidance on how firms can implement Artificial Intelligence risk management frameworks. It is accompanied by a supplement featuring case studies from financial institutions, outlining their experiences, lessons learned and approaches to managing Artificial Intelligence risks in different organisational settings.
The handbook is organised into four sections aligned with MAS’ proposed Guidelines on Artificial Intelligence Risk Management. These cover scope and oversight, Artificial Intelligence risk management, Artificial Intelligence lifecycle management, and the capabilities and resources needed to support responsible Artificial Intelligence use. MAS said it is still reviewing responses to its earlier public consultation on the proposed guidelines. It added that the handbook will be updated over time as industry use of Artificial Intelligence matures and as supervisory expectations evolve.
The regulator also plans to set up an Artificial Intelligence risk management workgroup under its BuildFin.ai initiative to develop implementation resources, facilitate knowledge sharing, and build capabilities and frameworks for managing risks from newer Artificial Intelligence technologies such as agentic Artificial Intelligence. BuildFin.ai brings together technology providers, research institutes and financial institutions to tackle shared industry challenges.
Kenneth Gay, Chief FinTech Officer at MAS, said the MindForge Artificial Intelligence Risk Management Toolkit and the Operationalisation Handbook mark a major step forward in efforts to support the responsible adoption of Artificial Intelligence in finance. Project MindForge was launched in mid-2023 to strengthen Artificial Intelligence risk management for financial institutions using Artificial Intelligence in their services and operations.
