On 20 March 2026, the Monetary Authority of Singapore (“MAS”) announced the successful completion of Phase Two of Project MindForge, resulting in the release of an AI Risk Management Toolkit for the financial sector. The initiative is part of MAS’ broader efforts to support the safe, responsible, and well-governed adoption of artificial intelligence (AI) in financial services.
The toolkit was developed collaboratively by a consortium of 24 industry participants, including banks, insurers, capital market firms and other financial institutions. It is designed to address risks arising from the use of traditional AI, generative AI, and emerging agentic AI technologies.
At the core of the toolkit is the AI Risk Management Operationalisation Handbook, which provides practical guidance on implementing AI risk management frameworks. The handbook is complemented by a supplement of real-world case studies.
In conjunction, MAS is presently reviewing responses to an earlier public consultation on a set of Guidelines on AI Risk Management (“GAIRM”), which was issued on 13 November 2025, and closed on 31 January 2026. The GAIRM is expected to be published in 4Q2026.
The handbook, which will be periodically updated, is structured around four key pillars aligned with GAIRM:
- Scope and Oversight – establishing AI governance frameworks and clear accountability.
- AI Risk Management – identifying AI use cases, assessing risk materiality, and maintaining AI inventories.
- AI Lifecycle Management – implementing controls across the full lifecycle of AI systems.
- Enablers – building organisational capabilities, infrastructure, and resources to support responsible AI use.
In addition, MAS will establish an AI risk management workgroup under the BuildFin.ai initiative to promote knowledge sharing and develop implementation resources, particularly for newer AI technologies such as agentic AI. This underscores MAS’ continued emphasis on industry collaboration and progressively strengthening AI governance standards across the financial sector.
How can we help?
Capital Governance assists FIs by:
- Gap Analysis & Remediation: Review existing IT and AI usage against best practices, including impending GAIRM.
- AIRM Framework Development: Designing and implementing comprehensive AI Risk Management frameworks
- Training – design and run bespoke AI courses pertinent to the operations of various financial institutions
… and more
capital-governance.com 