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Bates Research  |  06-12-24

The Importance of SBOM Compliance in Financial Services

The Importance of SBOM Compliance in Financial Services
Image © [Suriyo] /Adobe Stock

As a financial institution, you understand the critical importance of maintaining the security, transparency, and compliance of your software systems, especially when incorporating cutting-edge technologies like Artificial Intelligence (AI) and Machine Learning (ML). The Software Bill of Materials (SBOM) can be an action-oriented and powerful tool to help you achieve these goals, and Bates Group is uniquely positioned to assist you in this endeavor.

What is SBOM and Why is it Important?

As part of an enterprise framework, an SBOM is a detailed inventory of the granular components and services that make up a piece of software, including open-source and proprietary elements. In the context of AI/ML, an SBOM can ensure:

  • Transparency: Clear visibility into the components and their origins.
  • Security: Identification and mitigation of vulnerabilities.
  • Compliance: Adherence to regulatory requirements.
  • Maintenance: Efficient management of updates and dependencies.
  • Quality Assurance: Consistency and reliability across different environments.

For financial institutions, the importance of understanding these aspects of a new platform or technology service is critical given the emerging regulatory landscape and the need for robust security measures.

How Bates Group Helps

Bates Group is a leading financial consulting firm with extensive experience in compliance, risk management, and technology integration. Here’s how we can support your SBOM compliance efforts:

SBOM Creation and Documentation

  • Comprehensive Inventory: We will work with your technology staff to develop a detailed SBOM, documenting all software components used in your AI/ML systems.
  • Version Control: Maintain records of component versions to track changes and updates efficiently.

Security Audits and Risk Management

  • Vulnerability Assessment: Conduct thorough reviews with your technology organization to identify and mitigate vulnerabilities in your software stack.
  • Risk Mitigation Strategies: Develop and implement strategies to address identified risks, ensuring your systems remain secure.

Regulatory Compliance Support

  • Compliance Mapping: Align your AI/ML practices with industry guidance and regulations and create policies and procedures to meet those requirements.
  • Audit/Exam Preparation: Prepare detailed reports and documentation to support regulatory audits, demonstrating compliance with relevant standards.

Maintenance and Update Management

  • Dependency Management: Track and manage software dependencies with your technology staff to ensure seamless updates and compatibility.
  • Lifecycle Management: Develop strategies with your existing technology resources for the maintenance and lifecycle management of software components.

Quality Assurance and Consistency

  • Testing and Validation: Work with users to test your AI/ML models consistency and reliability across different environments and use cases.
  • Performance Tuning: Optimize the performance of your AI/ML systems by identifying and addressing potential bottlenecks and limitations.

Benefits of Partnering with Bates Group

By partnering with Bates Group, you gain access to a team of experts dedicated to enhancing your software’s transparency, security, and compliance. Our approach includes:

  • Tailored Solutions: Customized SBOM solutions that fit your specific needs and regulatory requirements.
  • Expert Guidance: Benefit from our deep understanding of the financial industry's regulatory landscape and best practices.
  • Proactive Risk Management: Stay ahead of potential security threats and compliance issues with our proactive risk management strategies.
  • Enhanced Trust and Transparency: Build trust with stakeholders by demonstrating a commitment to transparency and security through comprehensive SBOM practices.


In the financial services industry, the stakes for security, compliance, and reliability are incredibly high. An SBOM is a helpful tool for identifying, documenting and managing these needs effectively, especially when used as part of an enterprise framework to manage AI/ML, and Bates Group is here to help you navigate this complex landscape. By leveraging our expertise in financial consulting and technology integration, we can support your efforts to maintain secure, compliant, and efficient AI/ML systems.

Contact Bates Group today to learn more about how we can assist you in achieving SBOM compliance and enhancing the integrity of your software systems.

Meet Our AI Compliance Experts

Our Expert Consultants have years of experience in providing technology, cybersecurity, and privacy compliance consulting services. Bates Group’s experts can help you to assess your organization’s AI and cybersecurity framework, determine privacy obligations, provide consulting expertise for your employees or vendors, and establish governance programs addressing the implementation and usage of generative AI in your organization.

The Importance of SBOM Compliance in Financial Services The Importance of SBOM Compliance in Financial Services The Importance of SBOM Compliance in Financial Services

Brandi Reynolds, CAMS-Audit, CCAS - Managing Director: As leader of our FinTech and Banking team, Brandi leverages nearly 2 decades’ experience in financial services compliance (AML, consumer protection). Her expertise spans BSA/AML/OFAC compliance, risk management, and investigations.

Patrick Cox - Expert Consultant: Prior to joining our team, Patrick served as a regulatory strategist and risk oversight leader. Now, he draws on his experience as Chief Privacy Officer and cybersecurity counsel to advise on technology, cybersecurity, and generative AI compliance.

Kathleen “Kate” Dedenbach - Expert Consultant: Kate, a privacy and cybersecurity expert, assists financial services clients with navigating complex global privacy regulations (data breaches, notifications, vendor risk). She previously spent 10 years as Global Chief Privacy Officer for Ameriprise Financial.

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