Risk Management Framework for AI Procurement
Citation:
Work data:
Alternate URL:
https://20596328.fs1.hubspotusercontent-na1.net/hubfs/20596328/Risk Management Framework for AI Procurement-4.pdf
Type of work: Handbook/Primer/Guide
Categories:
e-Government & e-Administration | ICT InfrastructureTags:
artificial intelligenceAbstract:
Classifying and understanding risk is essential when procuring an AI system. It is important to recognize that the types and scale of risks vary from system to system.
When AI systems are developed for high-risk domains (e.g., employment, health, education, housing, finance, public assistance, etc.), two risk indicators become highly relevant. These indicators include:
- the complexities within the AI system, and
- the impact that outcome(s) may have on human lives.
Hence, it is imperative to determine how much risk the procuring organization is willing to accept for each system at the outset of each procurement. This act is known as establishing the risk appetite for the procurement. A well-defined risk appetite for a procurement should serve as an anchoring point throughout the procurement lifecycle to guide risk mitigation strategies and create an acceptable risk tolerance for the chosen system.
Downloads:
Miller, C.L. & Waters, G. (2024). Risk Management Framework for AI Procurement. Lewes: Center for Inclusive Change.
