The Monetary Authority of Singapore (MAS) has worked with 24 financial institutions, alongside other industry partners, to develop a toolkit for managing AI risks across the financial sector.

The toolkit marks the conclusion of phase two of Project MindForge and is intended to help financial institutions manage risks linked to traditional AI, generative AI and emerging agentic AI technologies.

At the centre of the toolkit is an AI Risk Management Operationalisation Handbook, which provides detailed, practical guidance on how firms can implement AI risk management frameworks.

It is accompanied by a supplement featuring case studies from financial institutions, outlining their experiences, lessons learned and approaches to managing AI risks in different organisational settings.

The handbook is organised into four sections aligned with MAS’ proposed Guidelines on AI Risk Management.

These cover scope and oversight, AI risk management, AI lifecycle management, and the capabilities and resources needed to support responsible AI use.

MAS said it is still reviewing responses to its earlier public consultation on the proposed guidelines.

It added that the handbook will be updated over time as industry use of AI matures and as supervisory expectations evolve.

The regulator also plans to set up an AI risk management workgroup under its BuildFin.ai initiative to develop implementation resources, facilitate knowledge sharing, and build capabilities and frameworks for managing risks from newer AI technologies such as agentic AI.

BuildFin.ai brings together technology providers, research institutes and financial institutions to tackle shared industry challenges.

Kenneth Gay, Chief FinTech Officer at MAS, said,

“The development of the MindForge AI Risk Management Toolkit, including the release of the Operationalisation Handbook, marks a major step forward in our journey to ensure the responsible adoption of AI in finance.

We are committed to fostering a culture of continuous engagement and strengthening of AI governance and risk management practices across the industry.”

Project MindForge was launched in mid-2023 to strengthen AI risk management for financial institutions using AI in their services and operations.

Featured image: Edited by Fintech News Singapore, based on image by MAS