A Risk Management Framework for LLMs

This white paper provides community banks with a practical, defensible framework for governing Large Language Models, giving leaders a clear method to adopt AI without compromising safety, compliance, or trust. It explains why LLMs introduce entirely new categories of operational, regulatory, and cybersecurity risk, and shows how a purpose-built AI GRCC platform functions as the modern operating system that community banks need to supervise models, protect customer data, and withstand examiner scrutiny. The paper outlines governance roles, risk-tiering methods, cybersecurity controls, and regulatory considerations that community banks can apply immediately, ensuring they deploy AI in a way that strengthens oversight rather than undermines it. In an environment where technology advances faster than regulation, this framework equips community banks to innovate responsibly, preserve credibility, and build long-term resilience.

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