Recommendations for Managing Emerging Risks Arising from Frontier Artificial Intelligence Systems
This memorandum from the Bangko Sentral ng Pilipinas provides supervised financial institutions with recommendations for managing emerging cybersecurity risks arising from frontier artificial intelligence systems. It urges institutions to enhance attack surface visibility, strengthen foundational and proactive security controls, reinforce authentication measures, leverage AI-enabled defensive capabilities, and reinforce readiness and response frameworks. Additionally, it recommends that institutions formally develop their own proportionate AI Governance Framework.
Summary and content fields are drawn from the document text and are pending editorial review.
Who issued it
Who it governs
Bangko Sentral-supervised institutions need to read this to understand expectations and recommendations regarding AI-related cybersecurity and governance.
What the document contains
The document addresses cybersecurity risks stemming from frontier artificial intelligence systems and outlines six specific recommendations for financial institutions to strengthen their risk management, authentication, attack surface controls, and defensive capabilities.
The text does not provide definitions for AI terms, specific penalty schemes for non-compliance, or a detailed breakdown of the complete AI governance principles referenced in BSP Memorandum No. M-2026-031.
- Frontier AI systems introduce significant cybersecurity risks through automated vulnerability identification and multi-stage cyberattacks.
- Financial institutions must enhance attack surface visibility by keeping accurate asset and cloud service inventories.
- Institutions should discontinue knowledge-based or SMS-based authentication for administrative access to mitigate AI-driven social engineering.
- Financial institutions are advised to deploy AI-enabled defensive capabilities for threat hunting, exposure management, and patch management.
- Supervised institutions are recommended to formally develop their own proportionate AI Governance Framework.
· Enhance attack surface visibility · Strengthen foundational security controls · Reduce exposure through proactive attack surface controls · Reinforce authentication measures · Leverage AI-enabled defensive capabilities · Enhance readiness and response capabilities
How it scores
Each score is backed by a quote verified against the document text. Editorial review has not yet confirmed them.
Accountability
0/5Clear responsibility for AI outcomes
Page 1-2
screening score · 2026-10-24
Fairness
0/5Non-discrimination and equitable treatment
Page 1-2
screening score · 2026-10-24
Human Dignity
0/5Respect for the inherent worth of persons
Page 1-2
screening score · 2026-10-24
Human Oversight
1/5Humans remain in control of consequential decisions
execute multi -stage cyberattacks with minimal human intervention.
Page 1
screening score · 2026-10-24
Privacy
0/5Protection of personal data and private life
Page 1-2
screening score · 2026-10-24
Transparency
0/5Openness about how AI systems work and are used
Page 1-2
screening score · 2026-10-24
Enforcement
0/5Consequences and compliance mechanisms with real force
Page 1-2
screening score · 2026-10-24
Impact Assessment
2/5Required assessment of an AI system's risks/impacts before or during use
ensuring that emerging risks are effectively identified, assessed, and mitigated.
Page 2
screening score · 2026-10-24