MAS’s Take on AI Risk Management: A Practical Roadmap for Banks

The Monetary Authority of Singapore (MAS) has just released a comprehensive Information Paper on Artificial Intelligence Model Risk Management (AI MRM). With financial institutions increasingly integrating AI into their operations—including the rapidly evolving generative AI technologies—this guidance arrives at a critical juncture. MAS’s key message is clear: while AI offers immense opportunities to drive innovation, improve efficiency, and enhance customer experiences, it also brings significant risks that require deliberate management.

In this article I try to offer an overview of MAS’s key recommendations, shedding light on what banks should prioritize—particularly in governance, model inventories, validation, and adversarial testing. Additionally, we compare MAS’s approach with that of the UK’s Prudential Regulation Authority (PRA) and reflect on MAS’s role as both a regulatory leader and an enabler of innovation.

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