The Monetary Authority of Singapore (MAS) has introduced a consultation suggesting that boards and senior managers in financial institutions be made directly responsible for risks associated with artificial intelligence. This marks a significant step in establishing clear accountability as AI technology becomes more ingrained in the banking sector. Unlike other regulatory frameworks globally, Singapore’s guidelines detail the expectations for boards to understand AI sufficiently to oversee its implementation effectively.
With financial institutions like DBS Bank and OCBC retraining their workforce to embrace AI, the MAS guidelines are timely in addressing the complexities and risks AI may introduce. Boards will be required to assess and manage risks associated with AI rather than merely approving its use. The MAS has raised concerns about new categories of risk, including unexpected AI behavior and the potential for generative AI to introduce serious vulnerabilities. Addressing such risks will demand significant effort from boards to enhance their governance practices and establish robust oversight mechanisms as the technology evolves.
👉 Pročitaj original: CIO Magazine
