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. - The Lean Compliance Engineer Uncertainty Creates the Opportunity for Risk I've sat through countless But here's what we miss: uncertainty creates the opportunity for risk . The failure, the breach, the defect—those were risks that became a reality. Why Traditional Programs Feel Like Whack-a-Mole Most risk & compliance management programs treat risk But you can't eliminate risk when uncertainty keeps creating new ones.

Change can be and often is a significant source of risk for organizations. That's why managing risk resulting from change is one of the most important risk measures to introduce In highly-regulated, high-risk industries this process is called Management of Change or MOC. of any risk management program. Does it effectively manage risk due to planned changes?

The “do” part is a function of its agency and is perhaps the greatest source of risk and concern facing That’s why agency without good judgment is not desirable as it creates the opportunity for risk. AI has other risks besides its capacity to act in the world and to decide. However, Agentic AI by far poses the greatest risk to society. Some of the risk factors already exist and others are still in our future.

On the other hand, they are the gatekeepers of caution, responsible for mitigating risks and ensuring This is an important observation that applies to many other risk and compliance domains. They often involve clear and defined risks that can be analyzed and quantified. On the other, their role demands a vigilant focus on uncertainty and risk management. Management systems, driven by the left hemisphere, focus on control and risk mitigation.

compliance is "document-centric" focused on procedural conformance the use of AI poses significant risk To bring the risks into focus, let’s consider the use of Large Language Models (LLMs) used in applications Lack of operational knowledge is a huge risk. Not the Only Risk As I wrote in a previous article , AI is not an impartial observer in the classical This will help you contend with risks associated with the use of AI, along with how best to meet all

First of all, I believe that those working in risk management should:   Understand what risk is and why contending with risk is important Understand the fundamental concepts of risk management Be familiar Part Three - Risk assessment Part Four - Risk response Part Five - Risk strategy Part Six - Risk culture uncertainties, identification of risk, developing risk measures, and how to continuously track risk a career in risk."

programs while sometimes necessary all too often end up removing value and expose companies to unnecessary risk As change can be a significant source of risk it is important that companies put in place an effective An effective change process acts as a layer of defense against exposure to risks caused by changes to Embedding a risk assessment into this process also ensures that risks are properly identified, evaluated Implementation implement change and risk response plans 5.

In this article, we delve into the topic of risk management and why the term "Proactive Risk Management of risk management. Risk Management vs. Risk Management." Furthermore, by using the phrase "Proactive Risk Management," we risk perpetuating the misconception

Artificial Intelligence (AI) risk databases are growing, AI risk taxonomies and classifications are expanding How can we stay ahead of all the risk that is coming our way? A wise risk manager once told me, “If you want to eliminate the risk, eliminate the hazard.” Conceptually, this is how we now think about risk. Heed the advice of the wise risk manager: “If you want to handle AI risk, contend with the uncertainties

The loss of trust is particularly at risk and as we know, trust takes time to earn and is quickly lost technology, culture, etc.) by the organization to achieve the desired outcomes Identify and evaluate risks

and service providers, every external entity that your business relies on could introduce AI-related risks Managing these risks is crucial to maintaining compliance and safeguarding your reputation. Here’s how to approach third-party AI risk management and how Lean Compliance can support you along the Understanding the Risks Third-party AI risks arise when the AI systems, algorithms, or data used by external These risks could manifest in several ways: Data Privacy Violations : If partners don’t adequately secure

Does your improvement process properly contend with uncertainty and risk? Risk-based continuous improvement is a proactive process that helps you anticipate, plan, and act to makes the process proactive is the identification and assessment of uncertainty (the root cause of risk ) along with the implementation of effective risk controls which are essential. (i.e. risk controls) to improve their effectiveness.