MAS Releases Insights on AI Model Risk Management Practices

The paper aims to share good practice following a review of selected banks’ AI MRM in mid-2024.

Key focus areas include:

• Governance and oversight including updating existing policies and procedures, establishing clear governance principles and building cross-bank capabilities;
• Key risk management systems and processes such as identifying AI usage and risks along with relevant proportionate controls; and
• Development and deployment covering the establishment of standards and processes for key areas accompanied by independent validation, peer reviews, and pre-deployment checks.

✅ As regulated firms move from rules based to AI based systems, businesses should establish a clear governance framework including clear and comprehensive policies and risk assessments.

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