Compliant Risk Technology (CRT) has formally signed a State Aid Application under the European Digital Innovation Hub CROBOHUB++ program, engaging a consortium led by the University of Zagreb — Faculty of Electrical Engineering and Computing (UNIZG-FER) — to conduct an independent analysis and validation of AI solutions for the automation of supervisory risk assessment in financial institutions.

The service, running from March to June 2026, is co-financed by the Croatian Ministry of Economy under the EU's Digital Europe Programme for European Digital Innovation Hubs.

The Scope: AI for Supervisory Risk Assessment

The engagement is focused on evaluating the applicability of advanced AI technologies for automating the complex and time-intensive process of supervisory risk assessment across banks and insurance undertakings. The analysis covers:

• Large Language Models (LLMs) — evaluating their ability to parse, interpret, and structure regulatory submissions and supervisory data at scale
• Retrieval-Augmented Generation (RAG) architectures — assessing how retrieval-based approaches can ground AI outputs in authoritative regulatory sources, reducing hallucination risk in compliance-critical environments
• Vector databases — benchmarking semantic search and retrieval performance over financial regulatory corpora
• Multi-agent systems — testing orchestrated AI agent architectures for decomposing complex supervisory workflows into auditable, parallelisable subtasks

A particular emphasis is placed on solutions that enable local model deployment — ensuring protection of sensitive financial data and alignment with regulatory data residency requirements.

Regulatory Context: Basel III and Solvency II

The validation is conducted within the context of two foundational regulatory frameworks:

Basel III governs the capital adequacy, stress testing, and liquidity requirements for banks worldwide. Supervisory authorities must assess compliance across hundreds of institutions — a process that traditionally involves extensive manual review of ICAAP and ILAAP submissions.

Solvency II sets the prudential framework for insurance and reinsurance undertakings in the EU, requiring supervisors to evaluate risk models, own risk and solvency assessments (ORSA), and capital adequacy across diverse business lines.

Both frameworks demand supervisory processes that are consistent, explainable, and scalable — precisely the qualities that well-designed AI systems can deliver, and precisely what this validation engagement is designed to assess.

EDIH CROBOHUB++: Europe's Digital Innovation Infrastructure

The EDIH CROBOHUB++ consortium represents a cross-institutional partnership coordinated by UNIZG-FER and includes the Innovation Centre Nikola Tesla (ICENT), the Croatian Chamber of Economy (HGK), Algebra University, the University Computing Centre (SRCE), HAMAG-BICRO, and InfoDom. The consortium delivers testing-before-investing services to SMEs across Croatia as part of the EU's network of European Digital Innovation Hubs.

The service is classified as "Analysis and testing of digital technologies" — a pre-investment evaluation that provides CRT with independent, institutional-grade assessment of its AI technology stack before committing to full-scale commercial deployment.

Outcome: Architectural Clarity and Commercialisation Roadmap

The deliverable is a comprehensive evaluation covering:

1. Comparative technology assessment — benchmarking available AI technologies against supervisory use cases
2. Effectiveness testing — measuring AI performance in extracting key financial indicators and generating structured risk assessments
3. Architecture recommendations — defining the optimal technology stack for production-grade supervisory AI
4. Commercialisation guidance — actionable roadmap for scaling validated solutions into regulated markets

This independent validation through the EDIH CROBOHUB++ framework complements CRT's existing work with the CORA AI SupTech Platform and reinforces the company's commitment to building AI-powered supervisory tools that meet the highest standards of regulatory credibility.

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The State Aid Application was digitally signed on 20 March 2026 under Grant Agreement No. 101083599, co-financed by the European Commission and the Croatian Ministry of Economy.