The OCC's examiner framework weighs consequences of failure

Examiners weigh consequences

The OCC issued a framework to support its examiners in evaluating banks' use of AI in normal-course business activities. It says a bank's control intensity could increase with the potential consequences of an agent's failure or misuse, and that risk classification may rest on potential consequences, transfer of agency and the degree of human oversight rather than the technical sophistication of the system.

A guide for examiners, with no new rules

The OCC says the framework does not establish supervisory expectations for banks, and that banks are not required to define a separate risk appetite for this technology. For a risk team, the practical reading is that the examiner's questions are the part to prepare for: what can each agent do, and who watches it?

Singapore and Apple point the same way

The Monetary Authority of Singapore announced that its Future of Finance Institute has begun operations, and its SafeFin.ai programme will focus on strengthening risk management practices, particularly for agentic AI. Apple wrote in its filing that agents can take actions autonomously, including completing transactions, and may behave in unintended or unpredictable ways.

Mastercard's CEO points to trust

Mastercard CEO Miebach said on the earnings call that consumers need to feel comfortable before this can really take off, and that having a registered agent is a key thing.

A list worth keeping

If we were asked tomorrow to list every agent in our own shop that can move money or change a record, how long would that list take to write, and who would sign it?