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Third-Party Governance
Third-party governance refers to the frameworks and controls organizations establish to manage risks and compliance obligations associated with external vendors, contractors, and service providers. This matters for AI governance because enterprises increasingly rely on third parties for AI systems, data processing, and model development, creating potential liability gaps and regulatory exposure if these partners fail to meet security, privacy, or ethical standards. Effective third-party governance ensures that external AI providers operate under contractual requirements aligned with the organization's compliance obligations, audit trails, and risk tolerance.
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