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CMORG AI Taskforce Releases Practical Guidance for Managing Generative AI Risks in Financial Services
The CMORG AI Taskforce released an AI Baseline Guidance Review to help financial firms manage Generative AI risks. It offers adaptable best practices and fosters responsible AI use.
CMORG AI Taskforce Publishes AI Baseline Guidance Review for Financial Sector
The CMORG AI Taskforce has released its AI Baseline Guidance Review to help financial institutions manage the risks related to artificial intelligence, with special attention to Generative AI. This guidance offers practical insight to aid firms in responding effectively to AI-related challenges.
Amanda Creak, CIO Forum Co-Chair at CMORG, emphasized that the resource reflects the combined expertise of diverse professionals and is grounded in real-world use. It’s created to be adaptable, enabling organisations to align it with their specific needs and stay responsive to emerging risks.
The review was developed collaboratively by CMORG, its member firms, City of London Corporation (CoLC), Financial Services Information Sharing and Analysis Center (FS-ISAC), and UK Finance. It builds on a baseline assessment of existing Generative AI risk mitigation guidance tailored to the financial services sector, culminating in best practices for managing these risks.
Key Areas Covered in the Review
- Government and Regulatory Approaches: Provides an overview of how regulators balance AI opportunities and risks, including a snapshot of emerging rules.
- Risk Management Principles and Frameworks: Outlines various frameworks and their roles in managing operational, reputational, and compliance risks related to Generative AI.
- Technical Implementation: Details standards firms should apply when adopting control frameworks, focusing on data protection, privacy, cybersecurity, and model risk.
- Third Party and Legal Considerations: Highlights the importance of clarifying roles and responsibilities across the supply chain and setting guidelines for third-party Gen-AI usage.
- Education and Awareness: Offers guidance for fostering a culture of responsible AI use and upskilling employees to reduce AI-related risks.
The review concludes with observations, key takeaways for firms to consider within their own context, and a reference section for further study.
Voices from the Financial Sector
Chris Hayward, Policy Chairman at City of London, noted that while AI presents significant opportunities, responsible adoption is crucial. The guidance encourages firms to implement proactive governance that supports safe, ethical AI use and ongoing evaluation.
Rebecca Gibergues, Executive Director for EMEA at FS-ISAC, stressed the importance of public-private collaboration and information sharing. She highlighted that shared frameworks help ensure ethical AI deployment while protecting stakeholder trust and financial sector security.
Jana Mackintosh, Managing Director for Payments and Innovation at UK Finance, pointed out that there’s no one-size-fits-all solution. Firms should adapt the guidance according to their risk appetite and combine it with other frameworks to effectively manage Generative AI risks and seize opportunities.
About CMORG
CMORG is a public-private partnership led by the Bank of England and UK Finance that works to strengthen the operational resilience of the UK financial sector. It identifies systemic risks, develops sector-wide mitigation strategies, and facilitates knowledge sharing. CMORG also manages the Sector Response Framework (SRF) for coordinated responses to systemic incidents.
About City of London Corporation
The City of London Corporation governs the Square Mile, focusing on maintaining a vibrant and sustainable financial district within a thriving London and UK economy.
About FS-ISAC
FS-ISAC is a member-driven, not-for-profit organisation dedicated to advancing cybersecurity and resilience across the global financial system. Founded in 1999, it operates a real-time information-sharing network supporting institutions representing $100 trillion in assets across 75 countries.
About UK Finance
UK Finance represents around 300 firms across the banking and finance industry. It works to improve competitiveness, support customers, and drive innovation within the sector.