AI Governance Frameworks: Regulatory Mandate

AI Governance Frameworks: Regulatory Mandate** BaFin's December 2025 guidance explicitly reclassifies AI as an ICT risk under DORA. Texas RAISE Act (effective Jan 1, 2026) and Colorado Consumer Protections (effective June 30, 2026) establish comprehensive AI governance laws. EU AI Act convergence on explainability, bias controls, and model risk management. **Evidence:** - AI governance is not advisory—it's regulatory mandate for all EU-regulated financial institutions - Three-pillar model: Strategic Anchoring, Organizational Embedding, Controlled Lifecycle - Same governance standards as critical ICT systems plus AI-specific controls **Sources:** - https://banking.vision/en/ai-governance-and-risk-management/ - https://www.bakerdonelson.com/2026-ai-legal-forecast-from-innovation-to-compliance - https://www.advisorengine.com/action-magazine/articles/navigating-ai-compliance-a-risk-based-framework-for-financial-services-in-2026 **Strategic Recommendation:** - IMMEDIATE (Q1 2026): Implement three-pillar governance model - Create comprehensive documentation: data sources, model architecture, validation procedures - Implement bias detection, fairness testing, continuous monitoring ***