materiality
Impact on customers, operations, financial soundness or market integrity.
Definitions (2)
A measure of an AI system's significance based on its potential impact on customers, operations, financial soundness or market integrity; used to tier required controls, testing, and governance intensity.
A process to determine the criticality and potential impact of a given enabling-technology arrangement on the institution and financial stability; materiality drives the required level of controls, monitoring, documentation and, where appropriate, supervisory engagement and approval.
Related Terms
material impact
Customer or market-facing effects causing measurable harm....
Materiality Assessment
Risk-based determination of an AI application's significance....
Material AI system
An AI application with significant impact or regulatory relevance....
Material AI Portfolio
Collection of AI systems material to an entity's operations or risk profile....
Decision significance
Classification of expected impact: non‑significant, significant, critical....