Episode 32 — Make AI Vendor Risk Real: Due Diligence, Contracts, and Ongoing Oversight (Domain 2)
As organizations increasingly rely on third-party AI services, managing vendor risk becomes a primary focus of Domain 2. This episode covers the end-to-end vendor management process, from conducting initial due diligence on a provider’s security posture and model transparency to drafting specific contractual clauses that protect against intellectual property theft or data breaches. For the AAIR certification, you must understand how to evaluate a vendor’s "model transparency" and their ability to provide the evidence necessary for your internal compliance requirements. We discuss the importance of Service Level Agreements (SLAs) that include provisions for model drift reporting and downtime notifications. Ongoing oversight is critical, as a vendor’s update to an underlying API can fundamentally change the performance of your integrated AI systems without warning. By applying a rigorous oversight framework to third-party providers, risk professionals ensure that the organization’s risk profile remains stable even when critical AI components are hosted outside its direct control. 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.
