Basel Committee says AI could amplify bank operational risk
The Basel Committee on Banking Supervision, a global bank regulator, said after it met in Indonesia on 28-29 September that AI has the potential to amplify operational vulnerabilities, including from cyber attacks and correlated dependencies in the financial system. The committee agreed to review the adequacy of its operational risk loss categories, with a focus on cyber risk and AI developments. It is also reviewing its prudential standard for banks' cryptoasset exposures, with an update due by year end.
NoteA global standard setter folding AI into its operational risk loss categories means banks should expect AI exposure to show up in capital and reporting requirements, alongside existing risk policies.
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