Third-Party & Foundation Model Risk

Modern AI systems increasingly rely on third-party vendors, external datasets, foundation models, cloud services, and interconnected technology ecosystems. While these dependencies accelerate innovation, they also introduce governance, security, compliance, operational, and reputational risks that organizations must manage carefully. In this lesson, learners will explore third-party risk management, foundation model dependencies, supply chain considerations, contractual oversight, vendor assessments, and governance controls used to evaluate external AI providers. Understanding these risks enables organizations to maintain accountability, strengthen governance programs, and reduce exposure to failures originating outside their direct operational control.