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is common to find that compliance programs do not include adequate support for: Change management Risk This leaves companies vulnerable to unnecessary compliance risk. 3. In addition, compliance often now requires additional capabilities to support: risk based methods, evidence this moves the focus from complying to regulatory elements to achieve compliance outcomes driven by risk #ComplianceTheats #ManagementProcesses #Risk #OperationalExcellence

A Mission to Confront Risk Let's start by acknowledging that risk is an inherent aspect of logistics. Risk, Uncertainty, and LEAN: A Complex Interplay Waste Is The Result Of Risk At the heart of our exploration Uncertainty is the breeding ground for risk, and risk, in turn, is the catalyst for waste. analysis and risk management Use margin to cushion the effects of irreducible and residual risk. more risk.

What is risk-based regulation? Regulatory models What might it mean to be a risk-based regulator? call a "risk society." What is Risk-based Regulation? Risk-based regulation is more than the technical implementation of risk assessment and risk management One of the appealing benefits of risk-based regulation is that is helps to address institutional risk

They tried to present risk aggregation, but here's the issue: you can't simply add up risks and average Risk is stochastic. It's even better when you understand how risk-connected elements interact, enabling evaluation of risk The promise of continuous risk assessment tied to AI was not delivered. ⚡  What AI Risk Actually Requires We need: Real-time controls, monitoring, and assessments Managed risk,  not just bigger risk management

When it comes to risk & compliance it is important to identify, collect, and monitor data of all kinds These are the easiest to capture and are useful to provide the status or condition of a particular risk Similarly, for risk & compliance – methods without measurements is also nonsense. While it is essential to know the status of risk & compliance system it is also important to know the These are most useful when assessing the performance of a risk & compliance program.

However, lagging indicators of this kind can never distinguish between whether your risk controls are This is a preventive action and leading with respect to future risk . They are on the left side of the bowtie diagram and before the risk event. The effectiveness of controls contributes to the probability of occurrence of the risk event. which is the purpose of risk management and the standard for overall compliance effectiveness.

Has risk actually been reduced? To prove this, you gather evidence: your risk register showing identified risks with severity ratings to actually reduce risk. actual risk reduction. Don't write "We conduct risk assessments." Write "Risks are managed to acceptable levels."

operational infrastructure with three components: Guardrails : Controls that prevent harm and contain risk Purpose & Scope Define mission, enumerate AI assets, identify high-risk use-cases that trigger enhanced Life-cycle Controls Design standards, pre-deployment risk assessment, validation protocols, controlled Treat governance as a learning system that updates its understanding of risk and control effectiveness assessment and minimal controls for highest-risk systems Evidence : Deploy controls and measure actual

Their AI risk register looks like this 👇 — every line high probability, high severity, all red. They're obligation risks — the effect of AI uncertainty on commitments across every part of their organization They've named the risk.

Margins can offset losses from market disruptions and operational risks—instances where organizations However, operational risk is best managed through risk and compliance programs. Compliance Drives Certainty To address operational risk, organizations establish programs ensuring (to Management traditionally handles common variation, while risk and compliance functions address specialized by the level of certainty (or confidence) in achieving objectives—what might be called assurance—and risk

controls tasks that are occasionally used (ex. risk assessments) tasks where people have forgotten its However, there is one outcome that is advanced and that is the possibility of risk. Companies may end up with more risk than any productivity improvement they might have realized by the Therefore, risk specialists would also benefit from applying LEAN to existing risk control processes to improve detection and response times to better prevent risk as well as mitigate its effects.

AI is a technology that operates within existing systems—systems that in highly-regulated, high risk The MOC risk assessment must evaluate how the AI system affects existing safety controls. Principle 2: Protect Operational Systems Isolate the hazard, then control the risks. These uncertainties create opportunities for emerging and novel risks. a shared risk with companies creating large language models and foundation models.