A newly appointed Chief AI Risk Officer wants to establish a consistent enterprise-wide approach to AI risk appetite. Which artifact is MOST foundational for this purpose?
Select an answer to reveal the explanation.
Short Explanation and Infographic
Here's the deal — b is correct because an AI risk appetite statement — endorsed at board level — establishes the organization's tolerance for AI-related risks across categories (accuracy, bias, privacy, safety) and provides the authoritative benchmark against which all AI risk assessments, escalations, and acceptance decisions are calibrated. A defines technical constraints.
Full explanation below image
Full Explanation
B is correct because an AI risk appetite statement — endorsed at board level — establishes the organization's tolerance for AI-related risks across categories (accuracy, bias, privacy, safety) and provides the authoritative benchmark against which all AI risk assessments, escalations, and acceptance decisions are calibrated. A defines technical constraints. C governs procurement. D improves communication but does not establish risk tolerance.