Top 10 SMCR Risks for AI in Financial Services
The rapid integration of artificial intelligence into financial services has fundamentally shifted enterprise risk. Download our whitepaper to understand the top ten core risks for SMF holders overseeing AI deployments.
Executive Summary
The rapid integration of artificial intelligence into financial services has fundamentally shifted enterprise risk. The Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) have made their position clear - AI is a technology operating under existing regulatory frameworks.
Under SM&CR, a named individual is personally responsible for every significant area of a firm's business. When algorithms dictate consumer outcomes, execute operational tasks, or influence market integrity, the burden of proof rests entirely on the accountable Senior Management Function (SMF) holder.
This whitepaper outlines the top ten core risks faced by executives overseeing AI deployments and introduces the AIRTA Systems continuous observability framework, designed specifically to help SMFs prove they have taken reasonable steps to deploy safe, compliant AI.