Regulatory landscape mapping
Identify the applicable regulatory frameworks for the use case: EU AI Act risk classification, SR 11-7 model risk management guidance, FINRA and SEC obligations, and any jurisdiction-specific requirements.
Method
Five-step regulatory alignment process
Regulatory alignment is not a checklist. Requirements vary by use case risk tier, jurisdiction, and model type. This process maps each AI initiative to its specific regulatory obligations and embeds compliance controls into the product architecture.
Use case risk classification
Classify the AI system under relevant frameworks: EU AI Act risk tier (prohibited, high, limited, minimal), model risk tier under SR 11-7, and any material risk designations under firm policy.
Obligation inventory and gap analysis
Document the specific obligations triggered by the classification: documentation requirements, human oversight mandates, explainability standards, testing protocols, and ongoing monitoring obligations. Identify gaps in current design.
Control design and embedding
Design the product controls that satisfy each obligation: documentation workflows, human review checkpoints, output logging, explainability features, and audit trail architecture.
Compliance validation and sign-off
Review the completed control set with compliance and legal stakeholders. Document the regulatory alignment assessment and obtain formal sign-off before the product goes live.
Outputs
Artifacts produced by the process
Regulatory landscape summary
Overview of applicable frameworks and requirements for the use case and jurisdiction.
- Applicable regulatory frameworks
- Risk tier classification per framework
- Anticipated regulatory evolution notes
Obligation register
Complete inventory of regulatory obligations triggered by the use case classification.
- Obligation type and regulatory source
- Current control status: met, gap, in-progress
- Priority and resolution owner
Compliance control specification
Product design requirements derived from regulatory obligations, ready for implementation.
- Control per obligation mapped
- Implementation specification and owner
- Testing and validation criteria
Regulatory sign-off package
Documentation package for compliance and legal review, including evidence of control implementation.
- Classification rationale and supporting evidence
- Control implementation evidence
- Compliance and legal sign-off record
Engagement Cadence
How the process runs in practice
Typical timeline: 2-4 weeks
- Week 1: regulatory landscape mapping and use case risk classification
- Week 2: obligation inventory and gap analysis
- Weeks 3–4: control design, compliance review, and sign-off documentation
Output: a complete regulatory alignment package that enables confident deployment of AI systems in regulated financial services environments.