NIST Artificial Intelligence Framework

AI washing

NIST has published its first-ever risk management framework for artificial intelligence, just in time to help risk and compliance professionals as your boards, senior management, and everyone else starts to wonder whether ChatGPT and similar AI-driven systems will take over the human race.  Released last week, the framework is 48 pages long and no, you…

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Grappling With Artificial Intelligence

AI risk

Later this week I’ll have the privilege to moderate a panel discussion on artificial intelligence at the Society of Corporate Compliance & Ethics’ 2021 conference — and as fate would have it, COSO published guidance last week on the risk management challenges around AI. So let’s dig into the subject, since clearly the universe is…

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SEC Talks AI Enforcement Risk

AI risk

We have more advice this week on artificial intelligence, this time from a top voice at the Securities and Exchange Commission who urged companies to do better at crafting — and implementing — thoughtful policies to govern AI risks. The speech came from Gurbir Grewal, head of the SEC’s Enforcement Division. He gave a speech…

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How ‘Fairness’ Helps Compliance

values

Compliance officers struggle mightily to articulate the right balance between what’s ethical and what’s legal. So when one of the country’s top banking regulators gave a speech earlier this week titled “Fairness and effective compliance management,” it caught my eye. The regulator in question is Michael Hsu, acting head of the Office of the Comptroller…

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Another Way of Looking at AI Risk

AI risk

Today we return to artificial intelligence, since these days compliance officers need all the good advice they can get on the subject. The New York City Bar Association recently published a paper on how AI might help with anti-money laundering compliance, and along the way raised several issues about AI that every compliance officer should…

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SEC Launches ‘AI Washing’ Enforcement

AI washing

The Securities and Exchange Commission sanctioned two investment firms Monday for making false statements about how they use artificial intelligence in their business operations — the first enforcement actions we’ve seen under a crackdown on “AI washing” that SEC officials had been promising for several weeks.  The two firms are Global Predictions Inc., an investment…

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Yes, Automating ICFR Helps, But… 

icfr

Internal audit and GRC professionals talk all the time about the importance of automating internal controls. Now we have some fresh academic research demonstrating what sort of benefit a company can gain from following that path. The research comes from Musaib Ashraf, an accounting professor at Michigan State University who published a nifty paper several…

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A Convergence of Risk Disclosure

risk assessments

Like many other people, last week I read the SEC’s new requirements for disclosure of climate change risks with a sense of trepidation. The more I studied them, however, the more I felt something else: a sense of déjà vu.  Like, has anybody else noticed how similar these disclosure requirements are to those that the…

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Justice Department Eyes AI Risks

AI risk

Last week the Justice Department announced that it will cast a more critical eye at abuses of artificial intelligence. Today let’s unpack what that news means for compliance officers in practice, and how you might need to adjust your compliance program to accommodate this brave new AI world. The pledge about increased scrutiny of AI…

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ChatBots, Compliance, and Risk

AI risk

Today I want to return to everyone’s favorite technology of the moment, artificial intelligence. To what extent could compliance officers incorporate AI chatbots into their Code of Conduct or internal reporting hotlines?  This has been on my mind lately because Air Canada recently gave us a fascinating example of the consequences of AI gone wrong.…

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