What is AI Risk Management?

Artificial intelligence (AI) risk management is the process of diagnosing and mitigating the potential risks associated with AI technologies. It involves the use of a combination of tools, practices and frameworks to measure risks and implement solutions to minimize them.

The goal of AI risk management is to proactively protect organizations and end users from the potential negative impacts of AI and maximize its benefits. The risk management process considers security risks (such as data poisoning and algorithmic bias), ethical risks (such as lack of regulatory compliance and legal liabilities) and organizational risks (such as data breach and strategic management errors). The AI risk management process involves:

• Risk identification – assessing and identifying IT security threats that can impact the organization, its workforce and operations
• Risk evaluation and analysis – comparing the magnitude of each risk and ranking them according to severity and frequency
• Risk mitigation – incorporating methods to deal with known and unknown risks and reduce threats