Understanding AI risk management

To address the various risks associated with AI and to comply with different compliance regulations, many organizations, especially in the regulated industry, have developed and implemented AI risk management programs. In short, AI risk management is the process of identifying, assessing, and mitigating the risk associated with the use of AI in automated decision-making. The ultimate goal of AI risk management is to establish trust in the AI/ML systems and ensure compliance with applicable rules and regulations.

Trusting an AI system requires rigorous assessment and consideration of the AI system across many different dimensions and criteria. Functionally, a trusted AI system needs to provide valid predictions/responses reliably for its intended use. This means that generated predictions/responses are consistently valid and can be trusted for reliable decision-making. Ethically, a trusted AI system needs to be safe to use, explainable, privacy...