The most critical reason for documenting AI-related risks is toreduce exposure to legal, regulatory, and reputational liabilities. Clear documentation demonstrates thatrisks were identified, assessed, and addressed, which is essential for accountability and defensibility in the face of audits, litigation, or enforcement actions.
From theAI Governance in Practice Report 2024:
“An effective AI governance model is about collective responsibility… which should encompass oversight mechanisms such as privacy, accountability, compliance.” (p. 13)
“Accountability… is based on the idea that there should be a person or entity that is ultimately responsible for any harm resulting from the use of the data, algorithm and AI system's underlying processes.” (p. 28)
While transparency, alignment with standards, and knowledge sharing are all secondary benefits,risk documentation’s primary role is liability mitigation.
