Mechanical enforcement of governance rules in LLM-based financial decision systems reduces non-compliant deferrals by 73% and raises task accuracy from MCC 0.43 to 0.88, revealing that governance and task performance are distinct axes.
Model Risk Management for Generative AI In Financial Institutions
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Mechanical Enforcement for LLM Governance:Evidence of Governance-Task Decoupling in Financial Decision Systems
Mechanical enforcement of governance rules in LLM-based financial decision systems reduces non-compliant deferrals by 73% and raises task accuracy from MCC 0.43 to 0.88, revealing that governance and task performance are distinct axes.