Episode 16 — Integrate AI Risk into ERM: Shared Language, Shared Processes, Shared Metrics (Domain 1)
AI risk should not be treated as a technical silo but must be integrated into the broader Enterprise Risk Management (ERM) framework, a core principle of Domain 1. This episode discusses how to align AI-specific risks with existing corporate risk categories such as operational, financial, and legal risk. For the AAIR exam, it is vital to understand the value of using a shared taxonomy and centralized reporting tools to provide executives with a holistic view of the organization's risk profile. We examine how to map AI failure modes to standard ERM impact scales and the importance of using consistent risk scoring methodologies. Integrating AI into ERM ensures that AI risks are prioritized alongside other business threats during capital allocation and strategic planning. We also explore the role of the Second Line of Defense in validating that AI risks are being consistently managed across different departments. This integration promotes a culture of risk awareness where AI is seen as a business capability that requires the same level of discipline as any other major investment. Produced by BareMetalCyber.com, where you’ll find more cyber audio courses, books, and information to strengthen your educational path. Also, if you want to stay up to date with the latest news, visit DailyCyber.News for a newsletter you can use, and a daily podcast you can commute with.
