The Monetary Authority of Singapore (MAS), Singapore’s central bank and financial regulatory authority, has released an AI Risk Management Toolkit as part of the completion of the second phase of Project MindForge, aimed at helping financial institutions manage risks associated with traditional, generative, and agentic AI systems.
According to The Paypers, the toolkit was developed in response to growing regulatory attention across the Asia Pacific region to the governance of AI in financial services, particularly as agentic AI systems — those capable of taking autonomous actions rather than simply generating outputs — become more prevalent across areas including fraud detection, credit decisioning, and customer service.
MAS is Singapore’s central bank and integrated financial regulator, responsible for overseeing monetary policy, financial stability, and the development of the country’s financial sector, including the advancement of FinTech innovation.
The central component of the toolkit is the AI Risk Management Operationalisation Handbook, developed in collaboration with 24 banks, insurers, and other industry partners.
The handbook provides practical guidance for financial institutions looking to build internal AI governance frameworks and is structured around four key areas: oversight, which covers the establishment of clear roles and responsibilities for AI supervision; risk management, focusing on identifying AI use cases and their associated risk levels; lifecycle management, addressing controls across each stage of an AI system’s deployment; and support, covering the infrastructure and staff capabilities required for responsible AI use.
The toolkit also includes a collection of real-world case studies drawn from financial firms, documenting challenges and successful approaches to AI risk management across the sector. By convening a cross-industry group to co-develop the toolkit, MAS sought to embed practical, field-tested guidance rather than purely theoretical frameworks.
MAS has indicated it plans to establish a new workgroup under its BuildFin.ai initiative to keep the toolkit updated as technology evolves and to facilitate ongoing knowledge sharing on emerging AI risk developments. The handbook will also be updated periodically to reflect regulatory expectations and technological change.
MAS chief FinTech officer Kenneth Gay said that the release of the toolkit represents a significant step towards ensuring AI is used safely and responsibly across the financial industry.
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