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Enterprise Risk
Enterprise risk refers to the potential events, conditions, or circumstances that could negatively impact an organization's strategic objectives, financial performance, or operational stability. In the context of AI governance, enterprise risk encompasses both traditional business risks amplified by AI deployment (such as financial losses from algorithmic errors) and novel AI-specific risks (such as model bias, data security breaches, and regulatory non-compliance). Managing enterprise risk effectively requires organizations to establish comprehensive governance frameworks that identify, assess, and monitor how AI systems introduce new vulnerabilities across business functions.
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