AI Glossary
AI Risk Management
The process of identifying, assessing, and reducing risks associated with AI systems.
AI Risk Management
Overview
Every technology introduces risk.
Artificial intelligence is no exception.
Organizations deploying AI systems must consider operational, security, privacy, compliance, and business risks that may affect users, customers, and the organization itself.
AI Risk Management is the process of identifying, evaluating, monitoring, and reducing risks associated with AI systems.
A helpful way to think about risk management is planning for a journey.
Before traveling, people often consider potential obstacles and determine how they will respond if problems arise.
Organizations apply a similar approach to AI.
Rather than waiting for issues to occur, they proactively identify potential problems and implement controls designed to reduce risk.
Effective AI risk management helps organizations balance innovation with responsibility.
It allows organizations to benefit from AI while maintaining appropriate safeguards and oversight.
Why It Matters
AI risk management helps organizations identify and reduce potential issues before they become larger problems.
Real-World Example
A company may assess an AI system for privacy, security, compliance, and operational risks before deployment.