Recursive governance model for systemically important Banks

Peter Haenni

• 2 min read
Recursive governance model for systemically important Banks
Event-driven SIPOC map auto generated by the ProcessHorizon web app

This event-driven SIPOC governance architecture for a Systemically Important Bank (SIB) operationalizes Gartner's six strategic Data & Analytics trends.

The following governance processes form an enterprise-wide capability stack that supports every operational banking process:

1. Sovereign AI Governance Maintain strategic control over AI models, critical data, infrastructure & regulatory sovereignty while ensuring operational resilience. Typical Use Cases: Customer data localization, Private banking LLM, Internal GenAI, Regulatory reporting AI, National cloud migration & Critical payment infrastructure

2. Decision Governance Ensure all automated & human-AI decisions are explainable, auditable, policy-compliant & aligned with business objectives. Typical Use Cases: Credit approval, AML investigation, Fraud blocking, Treasury funding, Trading approval, Customer onboarding & Collections

3. AI Governance Platform Govern the complete AI lifecycle from development to retirement while ensuring regulatory compliance & responsible AI. Typical Use Cases: Basel model governance, IFRS9 models, Market risk models, AI chatbot governance, ESG models, AI Act compliance & ISO 42001 compliance

4. Agentic Data Streaming Provide continuous event-driven intelligence enabling AI agents & business processes to respond in real time. Typical Use Cases: Instant fraud detection, Liquidity monitoring, Payment processing, Cyber threat detection, Market surveillance, ATM monitoring & Digital twin operations

5. Agentic Data Management Maintain trusted, AI-ready enterprise data through autonomous data quality, metadata, lineage & master data management. Typical Use Cases: Customer master data, Product master, Counterparty data, ESG data, Trade reconciliation, Regulatory data & Metadata catalog

6. GraphRAG Knowledge Intelligence Provide context-rich enterprise knowledge for complex decisions by combining knowledge graphs with generative AI. Typical Use Cases: AML investigations, Ultimate Beneficial Ownership (UBO) analysis, Customer 360°, Counterparty exposure, Connected fraud detection, Internal audit investigations,Regulatory obligation mapping & Board decision support

These six Gartner-inspired governance processes are inherently event-driven:

  • A business or external event triggers every process
  • Each process transforms trusted inputs into governed outputs
  • Every transformation has a clearly accountable process owner
  • Each output becomes either a business decision, a governed AI action, trusted data or contextual knowledge that feeds downstream banking processes

Using the following link you can access this sandbox SIPOC model in the ProcessHorizon web app and adapt it to your needs (easy customizing) and export or print the automagically created visual AllinOne SIPOC map as a PDF document or share it with your peers: https://app.processhorizon.com/enterprises/X83Z7vmh2mUij6cudftKc6sv/frontend