QuestionQ138

AI Risk Management

An organization is planning to implement a new AI system. Which of the following is the MOST important factor for determining the required level of risk-monitoring activities?

Explanation

An organization’s risk appetite establishes the broad amount of risk it is willing to accept and guides the design and resourcing of risk responses and monitoring. Risk tolerance sets more specific acceptable variation boundaries for individual objectives, while user count and compensating controls are inputs to a particular system’s risk assessment.

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