Hi All,
FINMA just published, FINMA Guidance Governance and risk management when using artificial intelligence
The use of artificial intelligence (AI) in the financial market is increasing.1 For supervised institutions, this is associated with both opportunities and risks. In this guidance, FINMA draws attention to the corresponding risks and the need to adequately identify, limit and control these risks. To date, there is no AI-specific legislation in Switzerland. In financial market law, the technology-neutral, principle-based regulatory requirements for effective governance and risk management cover the risks arising from the use of AI. In line with international requirements, FINMA expects supervised institutions that use AI to actively consider the impact of this use on their risk profile and to align their governance, risk management and control systems accordingly. Besides the size, complexity, structure and risk profile of the supervised institutions, the materiality of the AI applications used and the probability that the risks resulting from the use of these applications will materialise must be taken into account.
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Michael Roza CPA, CISA, CIA, CC, CCSKv5, CCZTv1, MBA, EMBA, CSA
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