
Stage 1: Risk Identification – What could go wrong?
Risk Identification focuses on proactively uncovering potential issues before an AI model causes harm. The primary challenge at this stage is identifying all relevant risks and vulnerabilities, including data quality issues, security weaknesses, ethical concerns, and unintended biases embedded in training data or model logic. Organizations must also understand how the model could fail or be misused across different contexts. Key tasks include systematically identifying risks, mapping vulnerabilities across the AI lifecycle, and recognizing bias and fairness concerns early so they can be addressed before deployment.
Stage 2: Risk Assessment – How severe is the risk?
Risk Assessment evaluates the significance of identified risks by analyzing their likelihood and potential impact on the organization, users, and regulatory obligations. A key challenge here is accurately measuring risk severity while also assessing whether the model performs as intended under real-world conditions. Organizations must balance technical performance metrics with business, legal, and ethical implications. Key tasks include scoring and prioritizing risks, evaluating model performance, and determining which risks require immediate mitigation versus ongoing monitoring.
Stage 3: Risk Mitigation – How do we reduce the risk?
Risk Mitigation aims to reduce exposure by implementing controls and corrective actions that address prioritized risks. The main challenge is designing safeguards that effectively reduce risk without degrading model performance or business value. This stage often requires technical and organizational coordination. Key tasks include implementing safeguards, mitigating bias, adjusting or retraining models, enhancing explainability, and testing controls to confirm that mitigation measures supports responsible and reliable AI operation.
Stage 4: Risk Monitoring – Are new risks emerging?
Risk Monitoring ensures that AI models remain safe, reliable, and compliant after deployment. A key challenge is continuously monitoring model performance in dynamic environments where data, usage patterns, and threats evolve over time. Organizations must detect model drift, emerging risks, and anomalies before they escalate. Key tasks include ongoing oversight, continuous performance monitoring, detecting and reporting anomalies, and updating risk controls to reflect new insights or changing conditions.
Stage 5: Risk Governance – Is risk management effective?
Risk Governance provides the oversight and accountability needed to ensure AI risk management remains effective and compliant. The main challenges at this stage are establishing clear accountability and ensuring alignment with regulatory requirements, internal policies, and ethical standards. Governance connects technical controls with organizational decision-making. Key tasks include enforcing policies and standards, reviewing and auditing AI risk management practices, maintaining documentation, and ensuring accountability across stakeholders.
Closing Perspective
A well-structured AI Model Risk Management framework transforms AI risk from an abstract concern into a managed, auditable, and defensible process. By systematically identifying, assessing, mitigating, monitoring, and governing AI risks, organizations can reduce regulatory, financial, and reputational exposure—while enabling trustworthy, scalable, and responsible AI adoption.

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At DISC InfoSec, we help organizations navigate this landscape by aligning AI risk management, governance, security, and compliance into a single, practical roadmap. Whether you are experimenting with AI or deploying it at scale, we help you choose and operationalize the right frameworks to reduce risk and build trust. Learn more at DISC InfoSec.
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