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Audio July 16, 2025

How Legacy Risk Practices Are Breaking Under AI Pressure

Andrew Moyad, Chief Executive Officer

Andrew Moyad, CEO of Shared Assessments, exposes the flaws in current AI contracting practices for third-party risk. He argues traditional frameworks are dangerously outdated for today’s rapidly evolving AI systems. Financial institutions must move beyond checklist-style diligence and adopt contextual, risk-based approaches that align with both operational reality and ethical standards.

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Andrew Moyad doesn’t hold back - AI is breaking traditional risk management models, and financial services need a total mindset shift.

In a world where AI evolves in real-time and decisions are increasingly delegated to automated systems, conventional contract clauses and long-form diligence templates are not just inadequate—they’re counterproductive. Moyad warns that blindly applying boilerplate cyber clauses to AI vendors creates negotiation gridlock and fails to reflect actual risk.

Instead, he calls for a smarter, layered approach rooted in strategic understanding. Not all AI is the same, and not every vendor deserves the same scrutiny. Financial institutions must start by asking: Is this actually AI? and How is it being used? - before jumping into contracts. Moyad emphasizes collaboration across legal, procurement, cyber, and business teams to develop agile playbooks. And he raises a rarely discussed point: resilience.

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