AI Guide For Boards in Singapore

AI GUIDE FOR BOARDS IN SINGAPORE

Section III: Governance and Oversight

7.5.3 Processes

• Retiring systems that are no longer appropriate or defensible.

Processes are the recurring operational practices that maintain system integrity and eective governance. is includes: • Maintaining a dynamic enterprise AI inventory • Periodic validation and testing. • Monitoring dri and performance. • Reviewing incidents and near-misses

A centralised, automated risk classication system can guide these routines, using a Tiered Risk Hierarchy: Example . Eective governance denes high-risk AI early. Weak governance discovers problems only aer customers, auditors, regulators ore employees raise concerns.

Tiered Risk Hierarchy: Example

• [Tier 4] Prohibited Use: Use cases that violate corporate values, customer trust, or legal standards. • [Tier 3] High Risk: Systems directly inuencing customer eligibility, credit scoring, employee outcomes, fraud prevention, or core operational resilience. ese demand stringent, continuous independent validation and direct board visibility. • [Tier 2] Medium Risk: Internal decision-support tools with moderate human override mechanisms. • [Tier 1] Lower Risk: Basic internal productivity tools (e.g., automated note-takers, calendar optimisers) that require minimal administrative overhead.

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