Implementation Checklist

Step-by-step checklist for implementing the FSI Agent Governance Framework.

Reference checklist — state is not saved between visits

This checklist supports planning and team review. Check state is not persisted across sessions. To track your organization's live progress against all 79 controls, use the Readiness Assessment — results persist across sessions and are exportable to Excel, JSON, and PDF.

You don't need to implement all 79 controls at once

Start with the highest governance zone currently in active use at your organization and its foundational controls. Mature from there.

Zone	Scope	Typical timeline
Zone 1 — Personal Productivity	Personal development, low risk	~1 day for foundational controls
Zone 2 — Team Collaboration	Departmental agents, medium risk	~1 week for baseline
Zone 3 — Enterprise Managed	Customer-facing or regulated workflows	6–8 weeks for comprehensive coverage

This checklist covers a full Zone 3 implementation. Use only the phases and controls applicable to your highest active zone.

Prerequisites

Before starting Phase 1, confirm the following:

Licensing: Validate coverage against the License Requirements Matrix. Zone 3 controls commonly require Microsoft 365 E5 or Microsoft Purview Suite capabilities. See also the Agent 365 Capabilities Summary.
Admin roles: Confirm who holds Power Platform Admin, Purview Compliance Admin, Entra Global Admin, SharePoint Admin, and Exchange Online Admin roles. See the Role Catalog and Operating Model.
Executive sponsorship: Confirm a designated AI Governance Lead and executive sponsor before starting structured implementation.

Phase 1: Assessment & Planning (Weeks 1-2)

Week 1: Current State Analysis

Conduct Framework Orientation (Day 1)

Read the Framework Overview
Understand 4 pillars and 3 zones
Identify project lead and team

Identify Existing Agents (Day 2-3)

Export current agent inventory from M365 Admin Center
List all agents with owner and description
Identify data sources for each agent
Document current governance procedures (if any)

Regulatory Assessment (Day 4-5)

Identify primary regulations (FINRA, SEC, SOX, GLBA, OCC, Fed)
Review Regulatory Framework for your regulations
Determine which controls apply
Check regulatory filing requirements

Compliance Baseline (Day 5)

Current DLP coverage
Current audit retention policies
Current MFA implementation
Current change control procedures

Week 2: Planning & Governance Setup

Establish Governance Structure

Assign AI Governance Lead
Assign Compliance Officer sponsor
Define Governance Committee (Zone 3)
Schedule governance meetings

Classify Existing Agents (Day 1-3)

Use the Zone Decision Matrix
Assign each agent to Zone 1, 2, or 3
Document classification rationale
Identify Zone 3 agents for priority handling

Create Implementation Roadmap (Day 4-5)

Map controls to implementation phases
Prioritize by regulatory requirement
Verify platform/license prerequisites using License Requirements and the Agent 365 Capabilities Summary
Assign ownership per Operating Model
Create timeline and milestones

Project Kickoff (Day 5)

Present framework to leadership
Get executive sponsorship
Assign project team
Schedule regular steering committee meetings

Phase 2: Foundation Implementation (Weeks 3-4)

Week 3: Environment Governance

Environment Routing (Control 2.15)

Navigate to PPAC → Manage → Tenant settings → Environment routing (toggle is under Environment routing, not Environment groups)
Enable default environment routing
Configure routing rules for security groups
Enable developer environment auto-provisioning
Test maker routing with new app creation
Document routing configuration

Environment Groups (Control 2.2)

Create environment groups for Zone 1, Zone 2, Zone 3
Apply connector policies per zone
Configure sharing limits per zone
Enable AI model rules if applicable
Document group-to-zone mapping

Managed Environments (Control 2.1)

Enable Managed Environment for Zone 2+ environments
Configure governance policies
Test policy enforcement
Document Managed Environment settings

Week 3: Security Baseline

Authentication & Access (Pillar 1)

Control 1.11: Conditional Access

Enable MFA for all agent creators/admins
Require MFA from outside corporate network
Test MFA enforcement
Document MFA policy

Control 1.18: RBAC

Define security roles (Creator, Editor, Admin, Viewer)
Assign least-privilege access
Document role definitions
Test access controls

Data Protection (Pillar 1)

Control 1.5: DLP and Sensitivity Labels

Review baseline sensitive data types (PII, financial, etc.)
Create test DLP policy
Test DLP with sample files
Enable sensitivity labels for SharePoint
Document DLP rules

Control 1.15: Encryption

Verify default encryption (TLS 1.2+ in transit)
Verify Microsoft 365 encryption at rest
Document encryption standards
For Zone 3: Plan for customer-managed keys

Audit & Monitoring (Pillar 1)

Control 1.7: Audit Logging

Access Purview Audit logs
Configure audit retention policy
Set retention period per regulation:
- Zone 2: 1 year
- Zone 3: 6+ years (see control for options)
Test audit log search
Document retention policy

Week 4: Governance Foundation

Registry & Inventory (Pillar 3)

Control 3.1: Agent Inventory

Create agent registry (spreadsheet or database)
Fields: ID, Name, Owner, Zone, Data Sources, Status, Approval Date
Import all existing agents
Assign owners
Document metadata for each agent

Approval Workflow (Pillar 2)

Control 2.12: Supervision & Oversight

Change Management (Pillar 2)

Control 2.3: Change Management

Documentation (Pillar 2)

Control 2.13: Documentation & Record Keeping

Establish document repository (SharePoint site)
Create governance documentation index
Store policies and procedures
Ensure version control
Document access controls

Phase 3: Advanced Governance (Weeks 5-6)

Week 5: Risk Management & Testing

Model Risk (Pillar 2)

Control 2.6: Model Risk Management

For agents using AI/ML:
- Document model purpose and use case
- Identify model inputs and outputs
- Define performance baseline
- For Zone 3: Plan model validation
If OCC Bulletin 2026-13 (formerly OCC 2011-12) / Fed SR 26-2 (formerly SR 11-7) applicable:

AI scope carve-out

OCC Bulletin 2026-13 and Fed SR 26-2 (April 2026) explicitly exclude generative AI and agentic AI models from their scope. Future dedicated AI guidance is anticipated. Consult your compliance counsel on which model-risk obligations currently apply to your AI agents.
- Perform model risk assessment (applying analogous MRM principles as best practice)
- Plan annual validation

Testing & Validation (Pillar 2)

Control 2.5: Testing & Validation

Define testing requirements per agent type
Create test plans for critical agents
Perform functionality testing
For Zone 3: Perform security testing
Document test results
Archive test evidence

Bias Testing (Pillar 2)

Control 2.11: Bias Testing

Week 6: Advanced Security & Compliance

Advanced Data Protection (Pillar 1)

Control 1.4: Advanced Connector Policies

Review high-risk connectors
Create allowlist of approved connectors
Block unauthorized connectors
Document connector policy
Test with sample agent

Control 1.6: DSPM for AI

Navigate to purview.microsoft.com → Solutions → DSPM (not "DSPM for AI (classic)" — that is the deprecated version)
Complete initial setup tasks in the new DSPM interface
Review recommendations and enable policies
Configure activity monitoring
Run oversharing assessments for agent knowledge sources
Document DSPM setup

Control 1.19: eDiscovery for Agent Interactions

Assign eDiscovery administrator role
Document agent content locations (Teams, SharePoint)
Create case templates for regulatory inquiries
Test search for agent content
Document legal hold procedures

Compliance Reporting (Pillar 3)

Control 3.3: Compliance & Regulatory Reporting

Design compliance dashboard
Define key compliance metrics
Create monthly compliance report template
For Zone 3: Create quarterly regulatory report
Identify report recipients

Incident Management (Pillar 3)

Control 3.4: Incident Reporting

Define incident categories
Create incident tracking process
Document incident investigation procedures
Create RCA template
Define escalation procedures

PPAC Reporting

Control 3.7: PPAC Security Posture Assessment

Access PPAC → Security → Overview
Review security score (Low/Medium/High)
Document baseline security posture
Create plan to address recommendations
Schedule weekly security score reviews

Control 3.8: Copilot Hub

Access PPAC → Copilot hub
Review agent counts and usage metrics
Monitor capacity/consumption status
Configure governance controls
Schedule weekly metrics review

Control 3.9: Microsoft Sentinel Integration (Zone 3)

Assess Sentinel integration requirements
Configure Sentinel workspace (if applicable)
Enable Power Platform data connector
Create analytics rules for agent threats
Document SOC integration procedures

Phase 4: Finalization & Operations (Weeks 7-8)

Week 7: Completion & Hardening

Remaining Security Controls (Pillar 1)

Control 1.1: Restrict Agent Publishing

Configure publishing security groups
Require approval for shared agents
Test publishing restrictions

Control 1.3: SharePoint Governance

Restrict agent access to approved SharePoint sites
Apply sensitivity labels
Limit external sharing
Document permissions

Control 1.2: Agent Registry and Integrated Apps Management

Review all integrated apps in M365 Admin Center
Audit connector permissions
Remove unnecessary integrations

Monitoring & Performance (Pillar 3)

Control 3.2: Usage Analytics

Enable analytics in Power Platform Admin Center
Create usage dashboard
Set baseline metrics
Configure performance alerts

Control 3.5: Cost Allocation

Review agent-related costs
Create cost allocation model
Assign costs to business units
Create cost tracking dashboard

Week 8: Training, Documentation & Operationalization

Training Program (Pillar 2)

Control 2.14: Training & Awareness

Create training curriculum:
- Zone 1 users: Basic governance overview
- Zone 2 users: Governance, approval, best practices
- Zone 3 operators: Complete framework
- Compliance team: Regulatory requirements
Conduct training sessions
Track training completion
Obtain attestation of understanding

Operationalization (All Pillars)

Establish Recurring Reviews

Schedule quarterly control assessments
Schedule quarterly compliance reviews (Zone 2+)
Schedule monthly monitoring (Zone 3)
Schedule annual framework review

Create Operating Procedures

Stakeholder Communication

Communicate framework rollout
Share governance policies
Provide quick reference guides
Establish help/support channels

Final Verification (All Controls)

Go/No-Go Assessment

Launch 🚀

Communicate framework is live
Activate monitoring and alerts
Begin operational reviews
Establish support procedures

Ongoing Operations (After Week 8)

Success Criteria

These criteria represent full Zone 3 maturity. Organizations governing Zone 1 or Zone 2 agents achieve a meaningful governance baseline well before all criteria are met — prioritize controls applicable to your highest active zone and expand from there.

Controls implemented at appropriate maturity levels for all active governance zones
Agent inventory complete and maintained
Compliance dashboard active and monitored
Training completed for all users
Incident management procedures operational
Audit logging and retention in place
Regulatory requirements met
Governance team trained and operational
Executive leadership informed and supportive

FSI Agent Governance Framework v1.6.2 - May 2026