The European Supervisory Authorities (EBA, EIOPA, and ESMA) have published a statement calling for a cross-sectoral, risk-based, and consistent supervisory approach to mitigate the ICT risks stemming from frontier AI models.
In the statement, the ESAs outline measures to help financial entities strengthen their operational resilience against cyber risks linked to frontier AI models. Particular emphasis is placed on the prevention, detection, and management of these risks.
The statement underlines that financial entities should have robust governance and risk management frameworks in place to support the effective management and mitigation of cyber risks associated with frontier AI models.
‘In all cases and without delay, the financial entities should establish governance structures that support effective management of frontier AI related risk and closely monitor this risk’, says the statement.
The ESAs encourage both financial entities and competent authorities to use the statement as a basis for supervisory dialogue, taking into account existing supervisory expectations. Such an approach would help ensure that the EU financial system remains resilient to the risks posed by frontier AI technologies.
