LinkedIn #5

Exploring AI Governance and Enterprise Risk Management

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Exploring AI Governance and Enterprise Risk Management:

AI governance refers to the frameworks, policies, and procedures that organizations implement to ensure the ethical, transparent, and accountable use of AI technologies. It encompasses a range of practices aimed at aligning AI development and deployment with societal values and regulatory requirements. Key components of AI governance include:

  • Ethical Guidelines

  • Regulatory Compliance

  • Stakeholder Engagement

  • Oversight Mechanisms

  • AI Risk Management

These guidelines can establish principles that guide the ethical use of AI.  Appropriate compliance can aid in adhering to laws and regulations that govern AI technologies. Furthermore, adequate stakeholder engagement can help to involve diverse stakeholders, including employees, customers, and regulators, in the AI decision-making process. Oversight mechanisms can help implement monitoring and auditing processes to ensure AI systems operate as intended and do not cause harm. Overall, AI Risk Management will be key in identifying, assessing, and mitigating the risks associated with AI technologies.

AI Risks

As our understanding of AI technologies and related risks evolves, new risks will continue to emerge as practices evolve and AI use cases continue to expand. Some common types of AI risks include:

  • Operational Risks

  • Ethical Risks

  • Data Privacy Risks

  • Security Risks

  • Malware Generation Risks

  • Misinformation and Disinformation Risks

  • Hallucination Risks

  • Compliance Risks

  • Intellectual Property Risks

  • Environmental Risks

  • Lack of Accountability

  • Algorithmic Biases

  • Lack of Transparency and Explain-ability

  • Model Dependency Risks

  • Training Data

  • Adversarial Attacks

  • Acquiring and retaining talent

  • Regulatory Compliance

  • AI Costs

  • Partnerships and Alliances

Sources include DelCreo’s NewsletterResponsible AI, NIST Generative AI Risk Framework, IBM AI Risk Management blog, Robust Intelligence’s resources on AI Risk Management, and Splunk’s articles on AI Risk Management​.

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