FSA AI / Model Governance Expectations for Financial Institutions

FSA AI / Model Governance Expectations for Financial Institutions — 90% of in-scope requirements covered.

5 requirements · 5 in scope (4 enforced · 1 designed). The 90% is weighted over the in-scope base.

FSA AI / Model Governance Expectations for Financial Institutions: requirement → the KYE™ artefact that enforces it

Demo data

You learn: Which requirements KYE™ enforces at runtime and with which artefact. You can: Walk the requirements.

  1. governance-accountability · enforced

    FSA AI expectations — establish an AI governance framework with clear accountability for the development…

    Audit events: kye.compliance.attestation.v1, kye.purpose.request.v1 · Constitution: 12 purpose permission, 00 index

  2. human-oversight · enforced

    FSA AI expectations — maintain meaningful human oversight and the ability to intervene in AI-driven decisions…

    Audit events: kye.purpose.admissibility.v1, kye.evidence.decision_map.v1 · Constitution: 36 governedui, 12 purpose permission

  3. explainability-disclosure · enforced

    FSA AI expectations — ensure AI-driven decisions affecting customers are explainable and that customers are…

    Audit events: kye.evidence.decision_map.v1, kye.evidence.pack.v1 · Constitution: 13 resilience loop

  4. operational-resilience-incident · designed

    FSA AI expectations — manage operational resilience and report material system / AI incidents to the FSA in a…

    Audit events: kye.signal.incident.opened.v1, kye.compliance.attestation.v1 · Constitution: 13 resilience loop, 51 no spof

  5. model-risk-management · enforced 1 unverified citation

    FSA AI expectations — manage model risk across the AI lifecycle, including validation, performance monitoring…

    Audit events: kye.risk_assessment.v1, kye.resilience.drift.detected.v1 · Constitution: 13 resilience loop

How this widget is built
Demonstrates
KYE™ Compliance Mapping Rail™
Components
  • Framework requirement (clause)
  • Coverage status
  • KYE™ enforcement artefact (event, decision-record field, Evidence Pack™ entry)
Flow
Clause → status → the KYE™ artefact that enforces it, enforced requirements first. Architecture diagram
Used on

Source: Japan Financial Services Agency (FSA) AI Discussion Paper (June 2024) and the model-risk / system-risk-management governance expectations in the FSA's Comprehensive Guidelines for Supervision of financial institutions. KYE™ maps the AI governance, model-risk-management, human-oversight, explainability, and operational-resilience expectations that bind an AI-supported financial action onto runtime evidence.

By category

CategoryReqsEnforcedDesignedAdvisoryDeferredCoverage
AI governance & accountability11000100%
Model risk management11000100%
Human oversight11000100%
Explainability & customer disclosure11000100%
Operational resilience & incident management1010050%

Every requirement → the KYE™ artefact that enforces it

IDTitleStatusKYE™ enforcement
fsa-guidelines-ai.governance-accountabilityFSA AI expectations — establish an AI governance framework with clear accountability for the development, deployment and oversight of AI in financial servicesenforcedaudit_events: kye.compliance.attestation.v1, kye.purpose.request.v1
engines: internal, internal
constitution_refs: constitution/12-PURPOSE-PERMISSION.md, constitution/00-INDEX.md
fsa-guidelines-ai.model-risk-managementFSA AI expectations — manage model risk across the AI lifecycle, including validation, performance monitoring and data-quality controlsenforced 1 unverified citationaudit_events: kye.risk_assessment.v1, kye.resilience.drift.detected.v1 unverified citation
engines: internal, internal, internal
constitution_refs: constitution/13-RESILIENCE-LOOP.md
fsa-guidelines-ai.human-oversightFSA AI expectations — maintain meaningful human oversight and the ability to intervene in AI-driven decisions affecting customersenforcedaudit_events: kye.purpose.admissibility.v1, kye.evidence.decision_map.v1
engines: internal
constitution_refs: constitution/36-GOVERNEDUI.md, constitution/12-PURPOSE-PERMISSION.md
fsa-guidelines-ai.explainability-disclosureFSA AI expectations — ensure AI-driven decisions affecting customers are explainable and that customers are appropriately informedenforcedaudit_events: kye.evidence.decision_map.v1, kye.evidence.pack.v1
engines: internal, internal
constitution_refs: constitution/13-RESILIENCE-LOOP.md
fsa-guidelines-ai.operational-resilience-incidentFSA AI expectations — manage operational resilience and report material system / AI incidents to the FSA in a timely mannerdesignedaudit_events: kye.signal.incident.opened.v1, kye.compliance.attestation.v1
engines: internal, internal
constitution_refs: constitution/13-RESILIENCE-LOOP.md, constitution/51-NO-SPOF.md

Canonical KYE™ surfaces referenced on this page: KYE Protocol™.