Applying risk management across the AI lifecycle
AI risks can exist in any stage of the AI lifecycle, spanning from business problem identification to the uses of AI systems. In the following sections, we will explore the various risks that can arise at each stage of the AI lifecycle (as illustrated in Figure 12.1) and suggest effective strategies and considerations to mitigate them.
Business problem identification and definition
In this initial stage of the AI lifecycle, organizations develop a comprehensive understanding of the business problems that AI can address. They also outline the overall solution approach and data prerequisites. It is critical during this phase to verify that the AI solution aligns with governance principles, standards, and requirements while achieving specific business objectives.
One significant risk is the regulatory compliance risk, which arises when there is a lack of consideration for potential regulatory requirements. Organizations must...
