How To Manage The Risks Of Machine Learning In Financial Services

In our first article, we reviewed some of the key findings from the Bank of England's (BoE) and Financial Conduct Authority's (FCA) 'machine learning in UK financial services' survey. Our second piece explored some of the key risks that Machine Learning (ML) applications present to financial institutions (FIs). Here, in this final article, we will discuss some of the risk management approaches that are available to FIs.

The management of risks is critical to ensure the safety, security, and reliability of the use of ML applications. If not addressed appropriately, ML risks could result in customer harm, significant financial losses, legal liabilities, and reputational damage for FIs.