NH NongHyup Financial Group is moving to establish an enterprise-wide AI governance system. As the financial sector expands its use of AI, it plans to set group-level standards and apply risk management criteria suited to each affiliate’s work environment.

NongHyup Financial said on July 9 it plans to complete the enterprise-wide AI governance system within this year, after preparing since last year in line with financial regulators’ AI policy direction.

It will first create group standards and then apply them to each affiliate’s work environment, including banking, insurance, securities, capital and savings banks.

It plans to apply consistent principles for AI use and risk management standards across the group. It also aims to establish a system to check regulatory compliance and risk levels in advance during the process of introducing AI services.

NongHyup Financial is also operating an enterprise-wide 추진체계 involving related departments, including organization, risk, internal control, IT and information security. It plans to complete employee training and establish change management measures within this year, and to finish verification of the system through pilot operations.

Once group AI governance is established, it will be able to verify regulatory compliance and risk levels for new AI services according to set procedures. The company believes this will reduce uncertainty in the AI adoption process and improve the safety of AI services provided to customers.

A NongHyup Financial official said, "Sophisticated AI governance is not an obstacle that blocks innovation, but a guardrail that allows us to move faster with confidence," adding, "We will introduce AI safely and become a best-practice case in the financial sector."