AI Risk Management
Definition
AI risk management is identifying and reducing risks introduced by AI systems. Risks include incorrect outputs, bias, privacy leaks, security vulnerabilities, and operational dependency. It includes prevention, monitoring, and response planning.
Business Context
Businesses implement this through testing, access controls, audit logs, human review paths, and ongoing monitoring. Risk management must match the impact level of the AI use case.
Why it Matters
It reduces business exposure and prevents AI failures from becoming operational incidents.
