Which statement BEST describes the relationship between AI risk management and traditional enterprise risk management (ERM)?
Select an answer to reveal the explanation.
Short Explanation
Here's the deal — you should integrate AI risk management into the existing ERM framework, not silo it or leave it to the technology department. It's a specialized domain that extends ERM's risk taxonomy and controls for AI-specific characteristics while keeping the same organizational rigor.
Full Explanation
AI risk management is the best answer because it introduces unique risk types (model drift, algorithmic bias, adversarial attacks, hallucination) that require specialized knowledge and controls, but these should be integrated into the broader ERM framework rather than siloed or left to the technology department alone. Integration ensures AI risks are treated with the same organizational rigor as other enterprise risks. The view that AI risk management should replace ERM because traditional frameworks are not equipped for algorithmic risks is unnecessary and disruptive. The view that AI risk management is solely the responsibility of the technology department and should not be embedded in enterprise governance misses the enterprise-wide impact of AI risks. The view that ERM frameworks already cover AI risks through existing information technology and operational risk categories without modification understates the unique nature of AI risks.