Effective AI oversight does not require a separate governance system. It requires clear ownership, a consistent approach to assessing risk, and reporting that helps directors determine whether controls are working. This whitepaper shows boards of community financial institutions how to incorporate AI into the governance and risk management processes they already use.
The guide translates the Financial Services AI Risk Management Framework into practical board discussions and actions. It covers how to inventory AI use cases, prioritize potential harms, assign responsibilities, evaluate controls, and establish reporting that can evolve as the technology changes.
You will learn:
- How to use the Govern, Map, Measure, and Manage functions to guide board discussions
- How to evaluate potential harm across consumer, financial, operational, compliance, cybersecurity, reputational, and strategic areas
- Seven steps for incorporating AI into existing risk processes, assigning accountability, and reporting results to the board
