QGI AI Governance

QGI Executive Risk Board

Board-Level Oversight: Capital Exposure • Regulatory Penalties • Business Unit Risk • Pareto Frontier

Evaluated: Sep 16, 2026 18:48
📊 Executive Summary 💰 Regulatory & Financial Exposure 📈 Risk & Trade-offs 🏢 Business Units
📋 Evaluation & Governance Context
  • Evaluation ID: QGI-EXEC-2026-0917-0001
  • Audited Batch: Monthly Batch 1 (350 records)
  • Evaluated Bank AI: Commercial SBA Credit Model v4.2
  • Data Period: Jan 02, 2026 – Jan 31, 2026
  • Governance Framework: Commercial Lending Policy (AMF / Law 25)
📊 Executive Risk Shifts Active vs. Baseline
  • Composite Health: 82 / 100 → 68 / 100 ↓ (Tier 1 Optimal: ≥ 80)
  • Capital at Regulatory Risk: $17.5M CAD (Large Flagged Loans)
  • Statutory Law 25 Cap: $8.9M CAD (Max 4% Global Turnover)
  • Executive Posture: Breach / Critical
Total Portfolio Volume SBA Portfolio
$221.4 M
Commercial Credit Portfolio
Capital at Regulatory Risk ELEVATED
$17.5 M
Large Loans in Flagged Segments
Law 25 Regulatory Exposure AMF • LAW 25
$8.9 M
Max Fine Tier (up to $25M or 4%)
Composite Health Score Breach / Critical
68 / 100
Tier 1 Level 5 Baseline (MFI)

Business Unit AI Governance Posture

Segmented portfolio volume, disparity metrics, and supervisory trend across enterprise divisions

DIVISION OVERSIGHT
Business Unit Division Active Volume Invariant (MFI) DIR Benchmark Status Supervisory Trend
Retail Trade $46.3M 0.52 0.52 Elevated Risk ↓
Health Care & Social Assistance $45.4M 0.78 0.78 Elevated Risk ↓
Professional & Tech Services $45.0M 0.76 0.76 Elevated Risk ↓
Manufacturing $42.4M 0.72 0.72 Elevated Risk ↓
Construction $42.3M 0.67 0.67 Elevated Risk ↓

Executive Tradeoff: Pareto Frontier & Risk Tolerance (τ)

Balancing annual origination volume against regulatory invariant tolerance ceilings

OPTIMIZATION ENGINE (MHB)
Policy Scenario τ Ceiling Annual Origination Default Rate Health Score Supervisory Posture
Strict Compliance (tau = 0.10) ≤ 0.10 $221.4M 10.0% 100 / 100 Full Pass (Tier 1 Optimal)
Balanced Level 5 Benchmark (Current Baseline) ≤ 0.25 $221.4M 10.0% 100 / 100 Full Pass (Tier 1 Optimal)
Aggressive Growth (tau = 0.40) ≤ 0.40 $221.4M 10.0% 100 / 100 Full Pass (Tier 1 Optimal)

Board-Level Strategic Interpretation & Financial Risk Guide

The Executive Risk Board converts statistical and demographic model variances into financial exposure, capital-at-risk allocations, regulatory penalty liabilities, and strategic origination tradeoffs.

💰 Capital Exposure & Regulatory Risk
  • Balance Sheet Exposure: Commercial loans in flagged high-disparity segments represent direct capital allocations subject to regulatory review.
  • Regulatory Liability: Statutory penalties can reach up to $25.0M CAD or 4% of worldwide turnover under Quebec Law 25.
  • Executive Implication: Unmitigated algorithmic bias creates actionable balance-sheet and reputational risk.
🏢 Division Risk Concentration
  • Segment Slices: Disparities track predominantly within SME commercial facilities and regional clusters.
  • Corporate Lines: Operating within nominal compliance bands with stable supervisory trends.
  • Resource Allocation: Direct remediation and underwriter audits to identified segments.
📈 Growth vs. Governance Optimization
  • Balanced Policy (τ ≤ 0.25): Maintains target origination volume while safeguarding fair-lending invariant bounds.
  • Aggressive Growth Risk: Loosening governance ceilings (τ = 0.40) increases default risk and risks statutory non-compliance.
  • Recommendation: Adhere to Level 5 invariant boundaries to preserve credit yield without exceeding AMF enforcement limits.