The U.S. Department of the Treasury has unveiled an AI Lexicon and a tailored AI Risk Management Framework to guide financial institutions in safely adopting artificial intelligence technology. These resources aim to address confusion stemming from inconsistent terminology and generic guidelines, which have complicated compliance and risk mitigation efforts against novel cybersecurity threats and biases. The framework features a matrix of 230 control objectives to effectively manage risks throughout the AI lifecycle. Developed by the Artificial Intelligence Executive Oversight Group, the initiative supports a public-private partnership aimed at strengthening cybersecurity in the financial sector. The lexicon serves as a common language to enhance communication about AI-related risks, while the framework provides actionable insights for banks, empowering them to navigate operational challenges and innovation in the rapidly evolving digital landscape. By promoting clear terminology and structured risk management, these tools are set to fortify the resilience of the financial system against sophisticated cyber threats.
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