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  • 1.  Fragmentation & Frameworks

    IBM Champion
    Posted Wed November 15, 2023 09:09 AM
    Edited by Weiyee In Wed November 15, 2023 09:13 AM

    After speaking on stage with @David Kliemann (at the Fast Company Accelerate Conference in San Francisco - Nov 8) I was asked by three audience members (in three different occasions) about my thoughts on the AI Trust, Risk, and Security Management (AI TRiSM) framework.  I had read it in Gartner reports and had no idea how it would be pronounced as an acronym, and still do not because each person vocalized it in a different way.  AI TRiSM refers to a framework and set of practices designed to ensure the responsible and secure development, deployment, and use of artificial intelligence (AI) systems.  In many ways the principles and spirit of AI TRiSM are the same as the work that is being done in the IBM Financial Services Council with their AI Framework, and further points towards the importance of this genre of work.  With Executive Order 14110, "Safe, Secure, And Trustworthy Development and Use of Artificial Intelligence (AI)," signed by President Biden on October 30, 2023, and now the US Cybersecurity and Infrastructure Security Agency (CISA) announcing a roadmap and steps towards playing a "key role in addressing and managing risks at the nexus of AI, cybersecurity, and critical infrastructure" and ongoing efforts by NIST and DHS towards the same, we are officially at a precipice of domestic inconsistencies of standards.

    To make this more complicated there are looming potential conflicts and inconsistencies in AI and Security regulations between regions (US, EU, UK, China, Asia, Japan, etc.) that could make it difficult for global financial institutions to comply with multi-jurisdictional security, data privacy and data governance requirements. Details and interpretations of definitions of prohibited practices, risk classification frameworks, and required documentation/testing may also differ across regimes depending upon final legislation. As nothing happens in isolation and too many interconnections and interdependencies ultimately impact businesses in a global digital economy, the challenges over time with continued fragmentation of standards, regulations, and best practices, the security and governance requirements grow with an attack surface that becomes not only broader but also deeper with AI.  And alarmingly all of this is growing as a body of requirements and constraints without the proper taxonomy and risk classification work that is being done in the IBM Financial Services Council by @Aly Farooqui and Asif.



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    Weiyee In
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  • 2.  RE: Fragmentation & Frameworks

    IBM Champion
    Posted Wed November 15, 2023 06:14 PM

    @Weiyee In

    Your observation about the complexities and challenges in AI Trust, Risk, and Security Management is indeed insightful, particularly in light of the varying international regulations and standards.

    Introducing the concept of DORA (Digital Operational Resilience Act) into this conversation could provide a valuable perspective.


    DORA, primarily focused within the EU, aims to ensure that all participants in the financial system have the necessary safeguards and resilience against cyber threats. It's especially relevant in this context because it illustrates a proactive and comprehensive approach to digital operational resilience, something that is crucial in managing AI-related risks.


    The principles of DORA could serve as a template or inspiration for global financial institutions grappling with multi-jurisdictional security, data privacy, and governance requirements. Its emphasis on rigorous risk management, incident reporting, digital operational resilience testing, and third-party risk management aligns well with the goals of AI TRiSM. DORA's framework could potentially offer a more harmonized approach to AI governance and security, aiding in the reduction of the fragmentation of standards and regulations you've highlighted.


    Moreover, DORA's approach could be instrumental in establishing a common taxonomy and risk classification system, addressing one of the critical issues you mentioned regarding the lack of such frameworks in current AI TRiSM implementations. This standardization would not only facilitate compliance but also enhance the overall security posture of institutions operating in the AI space.


     This could be particularly beneficial in the financial sector, where cross-border operations are the norm, and the need for a consistent approach to AI governance and cybersecurity is increasingly paramount.



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    Jose Arias
    Mainframe Security Specialist

    Mainframe Blog in Spanish: https://mainframeseguro.blogspot.com/
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    Original Message


  • 3.  RE: Fragmentation & Frameworks

    IBM Champion
    Posted Thu November 16, 2023 06:39 AM
    Edited by Weiyee In Sun November 19, 2023 09:52 AM

    Thanks @Jose Arias CISSP, ITIL (btw your name is working now lol)

    I read the white paper @Anne Leslie posted - liked it very much and posted a comment there - just to be clear - I like the efforts that DORA are striving for (and personal bias because I come from EU banks - UBS and BNPP) so I am more familiar with EU efforts but similar to the challenges I brought up to ESMA and EU Parliament more than a decade ago(and as an old man I am watching history repeat itself) - we are already seeing in the global multi-national banks regulatory arbitrage and fragmentation of standards and best practices - DORA is a good proactive and comprehensive approach to digital operational resilience, its implementation and integration into workflows and policies and procedures in FIs is already causing several issues and risks, including technology and regulatory fragmentation.  From a global perspective other regions and countries are already working to develop their own regulations, creating the fragmentation and lack of harmonization.  The IT/tech debt, complexity (data and security risks) and Compliance burden, resources applied to analysis and implementing various inconsistent regulations will undoubtedly impact efficiency of operations, just AU and IRP will be a nightmare.  So the unintended consequence, same as I pleaded to ESMA for MiFID a decade ago, will be an onerous impact on smaller and mid-sized FIs.  In a global and digitalized financial services world there needs international collaboration for common frameworks and standards - not just on resilience but also AI governance and policy makers need to harmonize.



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    Weiyee In
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    Original Message