AI Risk Management is the systematic process of identifying, evaluating, and mitigating the uncertainties and potential harms associated with artificial intelligence throughout its entire life cycle. This capability encompasses governance structures, use-case intake processes, and rigorous impact and risk assessments. It requires practitioners to manage risks related to data quality, model performance, third-party dependencies, security, privacy, fairness, and reliability. Beyond technical oversight, the skill involves defining organizational risk appetite, establishing accountability frameworks, and implementing robust monitoring and incident response protocols. Unlike AI auditing, which independently verifies the design and effectiveness of controls, AI Risk Management is focused on the proactive ownership, decision-making, and execution of risk treatments to align AI deployments with business and regulatory objectives.
AI Risk Management is a multidisciplinary capability involving the end-to-end management of risks inherent in AI systems, from conceptualization and development to deployment and decommissioning. It integrates technical safeguards with organizational policy and ethical standards to manage potential harms while supporting responsible innovation.