Topic

AI Risk

AI risk refers to the potential harms, failures, or unintended consequences that can arise from AI systems, including safety failures, biases, security vulnerabilities, and misuse scenarios. Understanding and managing AI risk is critical for enterprise governance because uncontrolled risks can lead to regulatory violations, financial losses, reputational damage, and harm to customers or stakeholders. Organizations need structured risk frameworks and monitoring mechanisms to identify, assess, and mitigate these risks throughout the AI lifecycle.

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Corporate PolicyUS2026-05-26

AI Incidents Rose 26% From 2022 to 2023, NACD Guidance Urges Boards to Adapt Oversight

The National Association of Corporate Directors has published governance guidance titled 'Tuning Corporate Governance for AI Adoption,' calling on boards to adapt oversight mechanisms to address AI-specific risks including hallucinations, data privacy concerns, and algorithmic bias. The guidance references AI Incident Database figures showing a 26 percent increase in AI incidents from 2022 to 2023, with 2024 data suggesting a further rise exceeding 32 percent. It is directed at US corporate boards and positions AI risk oversight as a core board-level responsibility.

United States board oversight AI risk incident tracking corporate governance algorithmic bias transparency accountability data privacy risk management