MAS Concludes Project MindForge with AI Risk Management Toolkit for Financial Institutions

The Monetary Authority of Singapore (MAS) has concluded the second phase of Project MindForge with the publication of an Artificial Intelligence (AI) Risk Management Toolkit for the financial services sector. Announced on 20 March 2026, the toolkit provides practical guidance for banks, insurers and capital market firms deploying AI across operations. It reflects industry collaboration and aligns with MAS’ proposed supervisory expectations for responsible AI use, covering traditional, generative and emerging agentic AI technologies.

The announcement was made by the Monetary Authority of Singapore following the successful completion of phase two of Project MindForge, which began in mid-2023. The initiative forms part of Singapore’s broader efforts to strengthen governance frameworks as AI adoption accelerates across the financial sector, building on earlier policy measures to mitigate AI risks across financial services.

Industry-Led Development of the Toolkit

The AI Risk Management Toolkit was developed by a consortium of 24 financial institutions and industry partners, including banks, insurance companies and capital market firms. The collaborative approach was intended to ensure that the guidance reflects real-world operational challenges and is applicable across different business models and AI use cases.

Central to the toolkit is the AI Risk Management Operationalisation Handbook, which provides detailed, practice-oriented guidance on translating AI risk principles into organisational processes. A companion supplement includes case studies documenting experiences and lessons learned by financial institutions as they deploy AI in varied contexts.

Alignment with Proposed MAS AI Guidelines

The Operationalisation Handbook is structured around four sections that align with MAS’ proposed Guidelines on Artificial Intelligence Risk Management, which are currently under review following a public consultation. These sections are designed to support institutions in embedding AI risk controls across governance, operations and technology lifecycles.

The four focus areas covered in the handbook address the end-to-end management of AI risks, from oversight arrangements to organisational enablers. Together, they aim to help financial institutions systematically identify, assess and manage risks arising from AI deployment.

• Scope and oversight: Establishing AI governance frameworks and clarifying roles and responsibilities for oversight.
• AI risk management: Identifying AI use cases, assessing material risks and maintaining AI inventories through policies and procedures.
• AI lifecycle management: Implementing controls across the full lifecycle of AI systems.
• Enablers: Building organisational capabilities, infrastructure and resources to support responsible AI use.

Ongoing Updates and Industry Capability Building

MAS has indicated that the handbook will be updated periodically to reflect the evolving use of AI and supervisory expectations. To support broader adoption, the authority will establish an AI risk management workgroup under its BuildFin.ai initiative, bringing together MindForge members and other practitioners.

BuildFin.ai is intended to facilitate shared implementation resources, knowledge exchange and capability development, particularly for managing risks associated with newer technologies such as agentic AI. The initiative complements Singapore’s wider engagement with regional partners on financial innovation, including efforts where Singapore collaborates on smart finance and fintech development.

“The development of the MindForge AI Risk Management Toolkit, including the release of the Operationalisation Handbook, marks a major step forward in our journey to ensure the responsible adoption of AI in finance. We are committed to fostering a culture of continuous engagement and strengthening of AI governance and risk management practices across the industry. The BuildFin.ai programme also serves as a foundation for our next phase of collaboration in AI risk management, to bolster the safe adoption of AI across the financial industry.” — Kenneth Gay, Chief FinTech Officer, Monetary Authority of Singapore