Financial services AI
Three lines of defence
A governance model separating risk ownership, oversight and independent assurance.
Definition
The first line owns and operates risk, the second sets frameworks and challenges, and the third provides independent audit assurance.
Why it matters
AI governance should allocate clear responsibilities across product teams, risk functions and internal audit rather than create orphan controls.
Related concepts
- Model risk management
Governance for risks created by incorrect or misused models.
- Human in the loop
A person reviews, approves or corrects AI-assisted work.
- Audit trail
A durable record of inputs, evidence, decisions, actions and versions.