--- title: "Curated Insight: the FSB's 12 sound practices for using AI in FS" description: Explore the FSB's 12 sound practices for AI adoption in financial services, focusing on governance, risk management, and AI lifecycle management. image: https://riskinsights.com.au/hubfs/Curated%20Insight%20FSBs%2012%20sound%20practices%20for%20using%20AI%20in%20FS%20%281%29.png --- [Skip to content](https://riskinsights.com.au/blog/curated-insight-fsb-12-sound-practices-for-using-ai-in-fs#main-content) [![Risk Insights - Logo - (RGB, Horizontal, Small)](https://riskinsights.com.au/hs-fs/hubfs/Risk%20Insights%20-%20Logo%20-%20(RGB%2c%20Horizontal%2c%20Small).png?width=200&height=40&name=Risk%20Insights%20-%20Logo%20-%20(RGB%2c%20Horizontal%2c%20Small).png)](https://riskinsights.com.au) - [Articles](https://riskinsights.com.au/blog) - [Approach](https://riskinsights.com.au/approach) Show submenu for Approach - [Commissions (Accuracy)](https://riskinsights.com.au/broker-partner-commission-accuracy-reviews) - [Claims Fraud (Fairness)](https://riskinsights.com.au/claims-fraud-fairness-reviews) - [Fees and Charges (Accuracy)](https://riskinsights.com.au/fee-and-charge-accuracy-reviews-risk-insights) - [About](https://riskinsights.com.au/about) - [Contact](https://riskinsights.com.au/contact) Open main navigation Close main navigation - [Articles](https://riskinsights.com.au/blog) - [Approach](https://riskinsights.com.au/approach) Show submenu for Approach - [Commissions (Accuracy)](https://riskinsights.com.au/broker-partner-commission-accuracy-reviews) - [Claims Fraud (Fairness)](https://riskinsights.com.au/claims-fraud-fairness-reviews) - [Fees and Charges (Accuracy)](https://riskinsights.com.au/fee-and-charge-accuracy-reviews-risk-insights) - [About](https://riskinsights.com.au/about) - [Contact](https://riskinsights.com.au/contact) --- 10 Sep 2026 # Curated Insight: the FSB's 12 sound practices for using AI in FS ![Picture of Yusuf Moolla](https://riskinsights.com.au/hs-fs/hubfs/Yusuf_Moolla_Headshot-transformed.png?width=50&name=Yusuf_Moolla_Headshot-transformed.png) [Yusuf Moolla](https://riskinsights.com.au/blog/author/yusuf) Share: [linkedin-in icon](http://www.linkedin.com/shareArticle?mini=true&url=https://riskinsights.com.au/blog/curated-insight-fsb-12-sound-practices-for-using-ai-in-fs) [envelope icon](mailto:?body=https://riskinsights.com.au/blog/curated-insight-fsb-12-sound-practices-for-using-ai-in-fs) The FSB published a consultation report, [Sound Practices for Responsible Adoption of Artificial Intelligence](https://www.fsb.org/uploads/P100626.pdf), in June. Consultation closed in July, and the final report is expected in October. The FSB says that this isn't an international standard and isn't meant to be prescriptive. The report includes case studies from banks and insurers about governance challenges they ran into and the controls they put in place. **Practices 1 to 4: organisation-wide governance.** The board and senior management setting strategic direction and providing oversight. Governance and accountability frameworks. Bringing AI risks into existing risk management, and "organisational adaptability" (the capacity to keep learning as the technology changes). **Practices 5 to 10: the AI lifecycle.** Materiality and risk assessment, model selection, data governance, explainability and transparency, performance management, and human oversight. These apply directly to use cases. **Practices 11 and 12: tech and 3rd-party risk.** AI-related cyber and ICT risk, and third party AI risk. Includes supply chain concentration and business continuity.   The full text, along with public responses to the consultation, is available here: [https://www.fsb.org/2026/06/sound-practices-for-responsible-adoption-of-artificial-intelligence-ai-consultation-report/](https://www.fsb.org/2026/06/sound-practices-for-responsible-adoption-of-artificial-intelligence-ai-consultation-report/)   --- Disclaimer: The info in this article is not legal advice. It may not be relevant to your circumstances. 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