From insights to action

1. From insights to action

In this video, we will discuss how to transform AI risk assessment findings into strategic actions that align with company strategy.

2. Strategic considerations for AI risk management

AI risk assessment findings can range from minor vulnerabilities to major threats posing significant risks. Due to limited resources and conflicting priorities, leadership must carefully consider any actions taken in reaction to them. Issues must be examined from many different perspectives. We'll look at threat prioritization, risk appetite, innovation versus security, cost versus benefit, and stakeholders' viewpoints.

3. Threat prioritization

Threat prioritization means ranking risks by their potential severity and probability of happening. It is similar to a risk matrix but in a different format. Risk groups go from high-impact and high-likelihood to low-impact and low-likelihood. The higher the severity (impact) and the probability of happening (likelihood), the higher the priority is to find a solution. This helps ensure that resources are allocated to the risks that pose the greatest danger to the organization.

4. Risk appetite

Another perspective is the organization's risk appetite, which is the level of risk an organization can accept. This will be unique for each company and depends on circumstances such as industry, financial strength, strategic goals, and risk management capabilities. A startup may accept more risk because it often strategically prioritizes growth above all else. Banks have stronger finances and risk management capabilities, but prioritize trustworthiness.

5. Balance between innovation and security

An essential aspect of risk appetite is the balance between innovation and security. There is always a compromise between pursuing innovation and ensuring security. You can think of it as a spectrum with innovation on one end and security on the other. Some companies tend toward the innovation side, while others tend toward the security side. This will have a direct impact on how they manage any identified risks.

6. Cost versus benefit

Cost versus benefit is another step in preparing action plans in response to known risks. This involves weighing the expense of mitigation against the potential cost of damage. Generally, security measures are worth investing in when they have a positive return on investment, or ROI. This is when the cost of reducing the risk is lower than the expected potential losses.

7. Low-hanging fruits

One important thing to look for at this stage is low-hanging fruits. These are actions that can be implemented quickly while significantly reducing risk. An example is the finding that an AI loan approval system is overly reliant on a single data point. Identifying and prioritizing them as part of the first wave of risk mitigation can have significant benefits. It can show progress, boost morale, and provide a solid basis for tackling more complex risks.

8. Stakeholder interests

A final consideration when creating actionable risk mitigation steps is different stakeholder interests. This is key because it helps rank risks based on their real-world impact. Through stakeholder input, organizations can gain a broader understanding of risks. For instance, security vulnerabilities might be high on the technical team's list of priorities, but the legal team may emphasize the significant risks if identified bias is not managed. As part of this step, conflicting viewpoints like this are collected and reconciled. Understanding different stakeholder interests also increases transparency and trust. When people feel their concerns are considered, they are more collaborative.

9. Strategic action plan

All these steps are then combined to create a strategic action plan. This plan has many levels, from high-level strategic considerations to detailed implementation plans for security initiatives. The high-level perspective is key to understanding how mitigation plans align with the organization's strategy.

10. Let's practice!

Now let’s test your understanding!

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