QGI AI Governance

Regulatory & Mathematical Reference

📖 Governance Glossary

Authoritative definitions for fair lending laws, supervisory benchmarks, and quantitative model invariants.

Regulatory (2) Fair Lending (2) Demographic (1) Mathematics (1) Risk Governance (1) Economics (1) Credit Risk (1) Underwriting (1) Bureau Feature (1) Pricing (1) Explainable AI (1) Audit Trail (1) Supervisory (1)

📂 Regulatory

AMF Regulatory
Autorité des marchés financiers
Quebec's financial regulatory authority governing fair treatment of customers, sound commercial practices, and equitable access to credit facilities.
Reference: Sound Commercial Practices Framework
Law 25 Regulatory
Quebec Law 25 (Bill 64)
Quebec's privacy and automated decision legislation prescribing statutory penalties up to $25M CAD or 4% of worldwide turnover for unlawful automated decisions without transparency.
Reference: Statutory Transparency Mandate
Acronym / Symbol Full Statutory / Technical Term Regulatory & Mathematical Definition Supervisory Benchmark
AMF Autorité des marchés financiers Quebec's financial regulatory authority governing fair treatment of customers, sound commercial practices, and equitable access to credit facilities. Sound Commercial Practices Framework
Law 25 Quebec Law 25 (Bill 64) Quebec's privacy and automated decision legislation prescribing statutory penalties up to $25M CAD or 4% of worldwide turnover for unlawful automated decisions without transparency. Statutory Transparency Mandate

📂 Fair Lending

DIR Fair Lending
Disparate Impact Ratio
The selection rate of the protected cohort divided by the selection rate of the control reference cohort: DIR = Rate_mwbe / Rate_control. A DIR below 0.80 flags adverse impact.
Reference: DIR = Rate_mwbe / Rate_ctrl (? 0.80)
4/5ths Rule Fair Lending
Four-Fifths (80%) Benchmark
Standard regulatory test where a selection rate for any protected group less than 80% of the highest rate constitutes prima facie evidence of adverse impact.
Reference: EEOC / AMF Disparity Benchmark
Acronym / Symbol Full Statutory / Technical Term Regulatory & Mathematical Definition Supervisory Benchmark
DIR Disparate Impact Ratio The selection rate of the protected cohort divided by the selection rate of the control reference cohort: DIR = Rate_mwbe / Rate_control. A DIR below 0.80 flags adverse impact. DIR = Rate_mwbe / Rate_ctrl (? 0.80)
4/5ths Rule Four-Fifths (80%) Benchmark Standard regulatory test where a selection rate for any protected group less than 80% of the highest rate constitutes prima facie evidence of adverse impact. EEOC / AMF Disparity Benchmark

📂 Demographic

MWBE Demographic
Minority & Women-Owned Business Enterprise
Designated commercial borrower cohort protected under fair lending guidelines and affirmative lending statutes.
Reference: Target Protected Class
Acronym / Symbol Full Statutory / Technical Term Regulatory & Mathematical Definition Supervisory Benchmark
MWBE Minority & Women-Owned Business Enterprise Designated commercial borrower cohort protected under fair lending guidelines and affirmative lending statutes. Target Protected Class

📂 Mathematics

M_FI Mathematics
Fairness Invariant Metric
QGI composite fairness invariant score bounded between 0.00 and 1.00. A score ? 0.80 certifies that decision mechanics remain balanced across demographic cohorts.
Reference: Invariant Scale (0.00 – 1.00)
Acronym / Symbol Full Statutory / Technical Term Regulatory & Mathematical Definition Supervisory Benchmark
M_FI Fairness Invariant Metric QGI composite fairness invariant score bounded between 0.00 and 1.00. A score ? 0.80 certifies that decision mechanics remain balanced across demographic cohorts. Invariant Scale (0.00 – 1.00)

📂 Risk Governance

? (Tau) Risk Governance
Tail-Risk Governance Tolerance Ceiling
The maximum permissible statistical variance across segment loss boundaries. Default bank governance tolerance ceiling is bounded at ? ? 0.2500.
Reference: Tolerance Ceiling: ? ? 0.2500
Acronym / Symbol Full Statutory / Technical Term Regulatory & Mathematical Definition Supervisory Benchmark
? (Tau) Tail-Risk Governance Tolerance Ceiling The maximum permissible statistical variance across segment loss boundaries. Default bank governance tolerance ceiling is bounded at ? ? 0.2500. Tolerance Ceiling: ? ? 0.2500

📂 Economics

M_HB Economics
Hypervolume Optimization (Pareto Frontier)
Multi-objective mathematical engine determining the optimal equilibrium between loan origination yield and fairness invariant boundaries.
Reference: Yield vs. Parity Trade-off
Acronym / Symbol Full Statutory / Technical Term Regulatory & Mathematical Definition Supervisory Benchmark
M_HB Hypervolume Optimization (Pareto Frontier) Multi-objective mathematical engine determining the optimal equilibrium between loan origination yield and fairness invariant boundaries. Yield vs. Parity Trade-off

📂 Credit Risk

PD Credit Risk
Probability of Default
Statistical probability that a commercial borrower fails to meet debt service obligations within a standard 12–24 month underwriting window.
Reference: Underwriting Model Output
Acronym / Symbol Full Statutory / Technical Term Regulatory & Mathematical Definition Supervisory Benchmark
PD Probability of Default Statistical probability that a commercial borrower fails to meet debt service obligations within a standard 12–24 month underwriting window. Underwriting Model Output

📂 Underwriting

DSCR Underwriting
Debt Service Coverage Ratio
Net operating income divided by total debt obligations. Essential risk variable used to evaluate liquidity and repayment capacity.
Reference: Benchmark Policy Floor: ? 1.20x
Acronym / Symbol Full Statutory / Technical Term Regulatory & Mathematical Definition Supervisory Benchmark
DSCR Debt Service Coverage Ratio Net operating income divided by total debt obligations. Essential risk variable used to evaluate liquidity and repayment capacity. Benchmark Policy Floor: ? 1.20x

📂 Bureau Feature

Paydex Bureau Feature
Dun & Bradstreet Paydex Score
Commercial payment timeliness score (1–100). Latent correlation with early-stage business tenure makes it a high-risk demographic proxy.
Reference: Commercial Rating: 1 – 100
Acronym / Symbol Full Statutory / Technical Term Regulatory & Mathematical Definition Supervisory Benchmark
Paydex Dun & Bradstreet Paydex Score Commercial payment timeliness score (1–100). Latent correlation with early-stage business tenure makes it a high-risk demographic proxy. Commercial Rating: 1 – 100

📂 Pricing

bps Pricing
Basis Points
Financial metric where 1 bps = 0.01% (0.0001). Internal compliance policy restricts non-risk-based APR disparities to ? 25 bps.
Reference: Spread Ceiling: ? 25.0 bps
Acronym / Symbol Full Statutory / Technical Term Regulatory & Mathematical Definition Supervisory Benchmark
bps Basis Points Financial metric where 1 bps = 0.01% (0.0001). Internal compliance policy restricts non-risk-based APR disparities to ? 25 bps. Spread Ceiling: ? 25.0 bps

📂 Explainable AI

SHAP Explainable AI
Shapley Additive Explanations
Game-theoretic feature attribution technique measuring the marginal contribution of each credit variable to the automated model score.
Reference: Feature Weight Decomposition
Acronym / Symbol Full Statutory / Technical Term Regulatory & Mathematical Definition Supervisory Benchmark
SHAP Shapley Additive Explanations Game-theoretic feature attribution technique measuring the marginal contribution of each credit variable to the automated model score. Feature Weight Decomposition

📂 Audit Trail

HITL Audit Trail
Human-in-the-Loop
Supervisory escalation workflow logging manual underwriter departures from model recommendations with mandatory dual-officer sign-off.
Reference: Discretion Audit Log
Acronym / Symbol Full Statutory / Technical Term Regulatory & Mathematical Definition Supervisory Benchmark
HITL Human-in-the-Loop Supervisory escalation workflow logging manual underwriter departures from model recommendations with mandatory dual-officer sign-off. Discretion Audit Log

📂 Supervisory

SLA Supervisory
Service Level Agreement
Regulatory countdown clock requiring mandatory investigation and sign-off on Level 4 compliance breaches within a 96-hour window.
Reference: Mandatory 96h Resolution SLA
Acronym / Symbol Full Statutory / Technical Term Regulatory & Mathematical Definition Supervisory Benchmark
SLA Service Level Agreement Regulatory countdown clock requiring mandatory investigation and sign-off on Level 4 compliance breaches within a 96-hour window. Mandatory 96h Resolution SLA