Rios Applied AI

Richard Rios

Making AI deployable in regulated financial institutions — auditable, explainable, and built to pass audit.

I help banks and fintechs put AI to work in their highest-stakes, most governance-constrained workflows: KYC/AML, transaction monitoring, fraud, and identity risk — without breaking what an examiner expects to see.

Eleven years in financial-services risk, controls, and client-facing operations, focused on a single problem: turning AI from a compliance liability into a defensible, reconstructable control.

Focus Areas

AML & Transaction Monitoring

Applying AI to alert triage and case work while preserving the SAR audit trail and false-positive economics.

Identity & Synthetic Fraud

Where AI helps and where it fails on synthetic-identity and first-party fraud — and how to keep decisions explainable.

AI & Model Risk Governance

Mapping LLM and agent deployment onto model-risk frameworks: validation, monitoring, oversight, change control.

Controls & Audit Readiness

Designing AI-assisted workflows so every decision is logged, reviewable, and reconstructable under examination.

Approach

Every AI recommendation has to answer three questions before it ships: is it auditable, is it explainable, and is it controllable? In regulated finance, a model that can't answer those isn't an asset — it's exposure.

Writing

Making AI Pass Audit: A Model-Risk-Management Framework for LLMs in Financial Crime and Identity

How to extend SR 11-7 model risk management to generative AI so it survives examination — auditable, explainable, and controllable.

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