Spoken by a human version of this article.

Ongoing education helps everyone understand their role in responsibly developing and using algorithmic systems.

Regulators and standard-setting bodies emphasise the need for AI literacy across all organisational levels.

Links

• ForHumanity - join the growing community here.
• ForHumanity - free courses here.
• IAIS: The International Association of Insurance Supervisors is developing a guidance paper on the supervision of AI.
• DNB: De Nederlandsche Bank - 6 general principles for the use of AI in the financial sector.
• ASIC: The Australian Securities & Investments Commission - report.
• NIST: The National Institute of Standards and Technology - AI Risk Management Framework.
• EU AI Act: The European Union Artificial Intelligence Act - specific expectation about “AI literacy”.

About this podcast

A podcast for Financial Services leaders, where we discuss fairness and accuracy in the use of data, algorithms, and AI.

Hosted by Yusuf Moolla.
Produced by Risk Insights (riskinsights.com.au).

Spoken by a human version of this article.

The terminology – “audit” vs “review” - is important, but clarity about deliverables is more important when commissioning algorithm integrity assessments.

Audits are formal, with an opinion or conclusion that can often be shared externally. Reviews come in various forms and typically produce recommendations, for internal use.

Regardless of the terminology you use, when commissioning an assessment, clearly define and document the expected deliverable, including the report content and intended distribution, to ensure expectations are met.

About this podcast

A podcast for Financial Services leaders, where we discuss fairness and accuracy in the use of data, algorithms, and AI.

Hosted by Yusuf Moolla.
Produced by Risk Insights (riskinsights.com.au).

Spoken (by a human) version of this article.

• Outcome-focused accuracy reviews directly verify results, offering more robust assurance than process-focused methods.
• This approach can catch translation errors, unintended consequences, and edge cases that process reviews might miss.
• While more time-consuming and complex, outcome-focused reviews provide deeper insights into system reliability and accuracy.

This article explains why verifying outcomes is preferred over tracing through processes, and how it works.

About this podcast

A podcast for Financial Services leaders, where we discuss fairness and accuracy in the use of data, algorithms, and AI.

Hosted by Yusuf Moolla.
Produced by Risk Insights (riskinsights.com.au).

Spoken (by a human) version of this article.

Documentation makes it easier to consistently maintain algorithm integrity.

This is well known.

But there are lots of types of documents to prepare, and often the first hurdle is just thinking about where to start.

So this simple guide is meant to help do exactly that – get going.

About this podcast

A podcast for Financial Services leaders, where we discuss fairness and accuracy in the use of data, algorithms, and AI.

Hosted by Yusuf Moolla.
Produced by Risk Insights (riskinsights.com.au).

Spoken (by a human) version of this article.

Banks and insurers are increasingly using external data; using them beyond their intended purpose can be risky (e.g. discriminatory).

Emerging regulations and regulatory guidance emphasise the need for active oversight by boards, senior management to ensure responsible use of external data.

Keeping the customer top of mind, asking the right questions, and focusing on the intended purpose of the data, can help reduce the risk.

Law and guideline mentioned in the article:

• Colorado's External Consumer Data and Information Sources (ECDIS) law
• New York's proposed circular letter.

About this podcast

A podcast for Financial Services leaders, where we discuss fairness and accuracy in the use of data, algorithms, and AI.

Hosted by Yusuf Moolla.
Produced by Risk Insights (riskinsights.com.au).

Spoken (by a human) version of this article.

Banks and insurers sometimes lose sight of their customer-centric purpose when assessing AI/algorithm risks, focusing instead on regular business risks and regulatory concerns.

Regulators are noticing this disconnect.

This article aims to outline why the disconnect happens and how we can fix it.

Report mentioned in the article: ASIC, REP 798 Beware the gap: Governance arrangements in the face of AI innovation.

About this podcast

A podcast for Financial Services leaders, where we discuss fairness and accuracy in the use of data, algorithms, and AI.

Hosted by Yusuf Moolla.
Produced by Risk Insights (riskinsights.com.au).

Spoken (by a human) version of this article.

With algorithmic systems, an change can trigger a cascade of unintended consequences, potentially compromising fairness, accountability, and public trust.

So, managing changes is important. But if you use the wrong framework, your change control process may tick the boxes, but be both ineffective and inefficient.

This article outlines a potential solution: a risk focused, principles-based approach to change control for algorithmic systems.

Resource mentioned in the article: ISA 315 guideline for general IT controls.

About this podcast

A podcast for Financial Services leaders, where we discuss fairness and accuracy in the use of data, algorithms, and AI.

Hosted by Yusuf Moolla.
Produced by Risk Insights (riskinsights.com.au).

Spoken (by a human) version of this article.

The integrity of algorithmic systems goes beyond accuracy and fairness.

In Episode 4, we outlined 10 key aspects of algorithm integrity.

Number 5 in that list (not in order of importance) is Security: the algorithmic system needs to be protected from unauthorised access, manipulation and exploitation.

In this episode, we explore one important sub-component of this: deprovisioning user access.

Link from article: U.S. National Coordinator for Critical Infrastructure Security and Resilience (CISA) advisory.

About this podcast

A podcast for Financial Services leaders, where we discuss fairness and accuracy in the use of data, algorithms, and AI.

Hosted by Yusuf Moolla.
Produced by Risk Insights (riskinsights.com.au).