FINMA Guidance 08/2024 Governance and Risk Management When Using Artificial Intelligence (Switzerland)
Section 2: Findings from supervision and FINMA's expectations – FINMA Guidance 08/2024 Governance and Risk Management When Using Artificial Intelligence (Switzerland)

FINMA Guidance 08/2024 Governance and Risk Management When Using Artificial Intelligence (Switzerland) 2.4: Test before use and monitor continuously with predefined indicators, thresholds, drift detection and exception handling

What does 2.4 require?

The institution schedules tests of data quality and functionality covering accuracy, robustness, stability and where necessary bias, with experts from the area of application supplying the questions and expectations and performance indicators defined in advance to judge whether the application meets its goals; it defines thresholds or other validation methods (sampling, backtesting, predefined test cases, benchmarking) for regular checks of output correctness and quality, monitors changes in input data to detect and treat data drift so models stay applicable, analyses the cases where users ignored or changed the output as a signal of weakness, and decides in advance how exceptions are recognised and handled, with fallback mechanisms should the AI drift from its purpose.

Maintained by Gerard Blokdyk

Other controls in Section 2: Findings from supervision and FINMA's expectations – FINMA Guidance 08/2024 Governance and Risk Management When Using Artificial Intelligence (Switzerland)

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