The Global Risks Alliance (GRA)
What readiness means in AI and Financial Model Risk: the evidence, governance and documentation a programme needs before a competent institution can review it independently.
Readiness in AI and Financial Model Risk is the state in which a programme's evidence, governance and documentation let a competent institution review it independently, against frameworks such as Supervisory Guidance on Model Risk Management (SR 11-7) and Model risk management principles for banks (SS1/23). A readiness file is released only at the owner's written direction, and GRA does not approve, rate, underwrite, lend or invest.
Fig.A programme from scoping to the owner's decision. Design, not a record.
How satellite radar turns a flood into an exposure update. Synthetic scene; no real event or place.
A readiness file describes a programme's evidence, risks and governance so that an institution can carry out its own review. GRA does not approve, rate, underwrite, lend or invest, and it recommends no counterparty.
| Regime | Scope | Key expectation |
|---|---|---|
| SR 26-2 (US, April 2026) | Models at banking organisations; generative and agentic AI stated to be outside scope | Risk-based, tailored model risk management commensurate with model use |
| PRA SS1/23 (UK) | Banks with internal model approval | Five principles: identification, governance, development, validation, mitigants |
| EU AI Act with AI Omnibus | High-risk AI including creditworthiness and life and health insurance pricing | Obligations apply from 2 December 2027 |
| NIST AI RMF | Voluntary, all sectors | Govern, map, measure, manage |
With SR 26-2 placing generative and agentic AI outside its scope, US banks govern those systems through broader risk management and third-party expectations while supervisors develop specific guidance. GRA reports this as a gap in the record, not as a rule. Topic depth at generative AI in finance; oversight at GRF AI oversight and accountability.
A file is released only at the programme owner's written direction, to a party the owner chooses, with no fee tied to any transaction.
Each term as this page uses it. Where a standard-setting body defines the term, the wording follows that body.
| Term | Definition |
|---|---|
| Readiness file | A document set describing a programme's evidence, risks, governance and data so that a competent institution can carry out its own independent review; it is not an approval, rating or offer of finance. |
| Due diligence | The independent investigation a lender or investor carries out before committing finance. |
| Environmental and social safeguards | Requirements lenders set so financed projects avoid, minimise and offset harm to people and the environment. |
| Model validation | Independent testing that a model performs as intended and is fit for a stated use. |
The bodies and documents this page is read against. Status and editions change; each link goes to the issuing body.
The current service level is R0: information and enquiries. An enquiry receives a reference and names the next step; applications, payments, compute allocations and registrations open only when their team, terms and review capacity exist.