# Governing Generative AI Across Financial Institutions: A Framework for Generative AI Risk Control

arXiv: https://arxiv.org/abs/2607.04103 · HTML: https://mlsanity.com/paper/2607.04103/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- Builds on 11 of its 22 references that are in the map.
- First posted on arXiv 5 Jul 2026.

## Builds on (most cited first, 11 of 11)

- [Retrieval-Augmented Generation for Knowledge-Intensive NLP Tasks](https://mlsanity.com/paper/2005.11401/) (2020)
- [On the Opportunities and Risks of Foundation Models](https://mlsanity.com/paper/2108.07258/) (2021)
- [Survey of Hallucination in Natural Language Generation](https://mlsanity.com/paper/2202.03629/) (2022)
- [On Faithfulness and Factuality in Abstractive Summarization](https://mlsanity.com/paper/2005.00661/) (2020)
- [A Survey of Large Language Models for Financial Applications: Progress, Prospects and Challenges](https://mlsanity.com/paper/2406.11903/) (2024)
- [When Safe Skills Collide: Measuring Compositional Risk in Agent Skill Ecosystems](https://mlsanity.com/paper/2606.00448/) (2026)
- [Does RAG Know When Retrieval Is Wrong? Diagnosing Context Compliance under Knowledge Conflict](https://mlsanity.com/paper/2605.14473/) (2026)
- [Agentic AI Systems Applied to tasks in Financial Services: Modeling and model risk management crews](https://mlsanity.com/paper/2502.05439/) (2025)
- [Credit Risk Meets Large Language Models: Building a Risk Indicator from Loan Descriptions in P2P Lending](https://mlsanity.com/paper/2401.16458/) (2024)
- [Shifting Work Patterns with Generative AI](https://mlsanity.com/paper/2504.11436/) (2025)
- [Interpretable LLMs for Credit Risk: A Systematic Review and Taxonomy](https://mlsanity.com/paper/2506.04290/) (2025)

## Abstract (arXiv)

Generative artificial intelligence is moving from general-purpose experimentation toward specialized applications across banking, capital markets, insurance, payments, and wealth management. Its main contribution is not limited to conversational interfaces. Modern generative systems can synthesize large document collections, extract information from unstructured data, generate software and analytical code, create scenario narratives, support research workflows, and coordinate multi-step tasks. These capabilities make generative AI especially relevant to finance, where decisions often depend on combining quantitative data with contracts, policies,filings, news, customer communications, and expert judgment. This paper presents an application-oriented view of generative AI in finance. It organizes potential uses around five capability patterns, including knowledge synthesis, content generation, analytical assistance, interaction, and workflow orchestration, and maps them to major financia functions. Representative applications include investment research, customer service, lending support, fraud investigation, financial reporting, operations automation, software development, and personalized financial guidance. The paper also discusses common technical architectures, such as retrieval-augmented generation, tool-using assistants, multimodal models, and agentic workflows, and identifies practical factors that shape business value. The resulting landscape provides a foundation for researchers and practitioners seeking to understand where generative AI may produce the greatest operational and analytical impact in financial services