Risk Taxonomy & Materiality

Artificial intelligence introduces a wide range of risks that organizations must identify, assess, and manage effectively. This lesson explores AI risk taxonomy and materiality, providing learners with a structured approach for understanding how AI-related risks emerge across the lifecycle of AI systems. Learners will examine operational, legal, ethical, compliance, security, and reputational risks while exploring methods used to prioritize risks based on their potential impact and likelihood. Understanding AI risk classification and materiality helps organizations allocate resources appropriately, strengthen governance programs, and support informed decision-making in increasingly complex AI environments.