AI Governance for Financial Services
Specialist AI governance consulting for Australian banks, insurers, and superannuation funds navigating APRA, ASIC, and FAR requirements.
We understand the unique regulatory environment facing APRA-regulated entities and help you build AI governance programs that satisfy regulators while enabling AI innovation.
The Regulatory Landscape
Australian financial services face a unique combination of prudential and conduct regulations affecting AI governance.
APRA CPS 230
In Force
Operational Risk Management standard requiring entities to identify, assess, and manage operational risks - including AI-related risks. Material service provider arrangements (including AI vendors) must be documented and registered.
- AI systems as operational risk sources
- Material service provider register requirements
- Incident notification within 72 hours
ASIC REP 798
Published October 2024
"Beware the Gap" report reviewing AI governance at 23 AFS and credit licensees. Found governance gaps at nearly all organisations, with immature generative AI governance and missing bias/fairness policies.
- Nearly half lacked fairness/bias policies
- Generative AI governance less mature than predictive AI
- 11 governance questions for licensees
Financial Accountability Regime
In Effect
Personal accountability for accountable persons with penalties up to $1.565 million for individuals. AI governance failures that impact customers or create systemic risk could trigger FAR accountability.
- Personal liability for executives
- Due diligence obligations
- Clear accountability mapping required
Privacy Act 2024
Transparency Requirements: December 2026
Automated decision-making provisions require transparency about AI use in decisions affecting individuals. Financial services must disclose which decisions involve AI and provide explanations.
- Automated decision-making disclosure
- Right to human review
- Enhanced data quality obligations
AI in Financial Services
Financial services are among the most advanced AI adopters - but also face the highest governance requirements.
Credit Decisioning
AI-powered credit scoring, lending decisions, and limit management require fairness validation and explainability.
Fraud Detection
Real-time transaction monitoring and fraud prevention models need continuous validation and performance monitoring.
Customer Service
AI chatbots and virtual assistants must provide accurate advice and know when to escalate to humans.
Claims Processing
Insurance claims automation requires fairness, transparency, and human oversight for complex decisions.
How We Help
Tailored AI governance services for APRA-regulated entities and ASIC licensees.
AI Governance Programs
Comprehensive governance frameworks with APRA-aligned operating models, committee structures, and board reporting.
Learn more →CPS 230 AI Risk Frameworks
AI risk taxonomies and assessment methodologies that satisfy CPS 230 operational risk management requirements.
Learn more →Regulatory Gap Analysis
Independent assessment against APRA, ASIC, and Privacy Act requirements with remediation roadmaps.
Learn more →Ready to Address Your AI Governance Requirements?
Schedule a consultation to discuss your organisation's specific regulatory requirements and how we can help you build governance that satisfies APRA, ASIC, and protects your executives under FAR.