AI Trust Shield Framework

AI Trust Shield (ATS): A Harmonized Risk Management Framework For Gen AI In Finance

Rationale and Business Value:

The global financial services sector is rapidly embracing Artificial Intelligence (AI) technologies while developing new digital infrastructure and API services for Open Banking, CBDCs (Central Bank Digital Currencies), ISDA (International Swaps and Derivatives Association), Embedded Finance and other transformative initiatives.

While AI unlocks significant opportunities, it also introduces new risks.

The ATS framework aims to help address these emerging risks by providing a comprehensive and harmonized approach to Gen AI risk management and governance in financial services. It aligns with key international standards and regulations from NIST, OWASP, ISO, and the EU AI Act, ensuring compliance and facilitating global adoption.

Business benefits of ATS for financial institutions include:

Reduced Risk: Proactive identification and mitigation of AI-specific risks like bias, security vulnerabilities, and explainability issues.

Enhanced Regulatory Compliance: Streamlined adherence to evolving AI regulations and ethical guidelines from various governing bodies.

Improved Trust and Transparency: Fosters trust with customers, regulators, and investors by demonstrating responsible AI development and use.
Competitive Advantage: Positions your institution as a leader in responsible AI adoption, attracting talent and investors.

The ATS Framework:

The ATS framework is divided into six key phases, each addressing a crucial aspect of AI risk management and governance in financial services:

AI Inventory & Impact Assessment: Identify existing and planned AI deployments, assess their potential impact on business processes and risks.
Governance & Oversight: Establish clear governance structures, roles, and responsibilities for AI development, deployment, and oversight.
Risk Identification & Analysis: Leverage industry best practices and threat modeling techniques to identify potential AI risks specific to financial services applications.
Risk Mitigation & Controls: Implement robust mitigation strategies, controls, and safeguards to address identified AI risks. This includes bias detection and mitigation, explainability techniques, and robust cybersecurity measures.
Monitoring & Continuous Improvement: Implement ongoing monitoring processes to detect emerging risks and ensure the effectiveness of existing controls. Continuously refine and update the AI risk management approach.
Reporting & Transparency: Establish clear reporting mechanisms to communicate AI risks and compliance status to internal and external stakeholders, including regulators.

Alignment with Key Standards & Benchmarks:

The ATS framework is evolving and explicitly references and aligns with existing and emergent AI risk management and governance standards, including:

NIST AI Risk Management Framework (RMF): Provides a structured approach to identifying, assessing, and mitigating AI risks.

OWASP Top 10 AI Risks: Identifies ten key security risks associated with AI models and deployments.

ISO 31000 Risk Management: Establishes a framework for effective risk management practices.

Regulatory Compliance:

EU AI Act: Ensures compliance with upcoming European Union regulations on AI development, deployment, and governance.

Client Adoption and Manageability:

The ATS framework is designed to be modular and easily adopted by financial institutions of all sizes. Each phase can be implemented independently or as a comprehensive program based on specific needs and risk profiles.

Implementation Tools & Templates: NetrShield will offer a suite of tools and templates to support clients in implementing each phase of the ATS framework. This reduces the burden of building everything from scratch and streamlines the adoption process.

Tailored Risk Assessments & Training: NetraShield can help clients conduct tailored AI risk assessments specific to their unique use cases and provide training programs to equip personnel with the knowledge to implement and maintain the ATS framework effectively.