Financial Stability Board Publishes 12 AI Practices for Financial Firms
Financial Stability Board published a final report on October 15 outlining 12 practices for responsible AI adoption by financial institutions. The guidance covers generative AI and agentic AI, with the first four practices focused on organization wide governance and the remaining eight addressing risks across the AI lifecycle.
The governance practices call for board and senior management oversight, defined responsibilities, documentation of AI use, and regular adjustments as AI changes. The risk practices cover materiality assessments, model selection, data governance, explainability, performance monitoring, human oversight, cyber risks, and third party dependencies.
The practices are non-prescriptive and do not constitute a binding international standard. Financial institutions can adapt them to their risk profiles and integrate them into existing governance, cyber risk, and third party risk frameworks.
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