AI Risk Management

AI risk management is the discipline of identifying, assessing, mitigating, and monitoring the harms an AI system can cause across its lifecycle.

What is AI Risk Management?

AI risk management borrows from enterprise risk management but adds AI-specific concerns: bias, hallucination, drift, opacity, automation bias, security against prompt injection, and unintended scale of harm. Frameworks include the NIST AI Risk Management Framework, ISO/IEC 42001, the EU AI Act risk classification, and sectoral guidance from EIOPA, EBA, and the FCA. A working programme has a register, risk owners, control mappings, and review cadence.

How does AI Risk Management apply to enterprise AI?

Enterprises deploying AI in customer-facing or decision-impacting workflows need a documented AI risk management programme. Insurance, banking, and healthcare buyers will not sign without one.