Understanding AI Risk Management for Small Businesses

Based on the NC-AI-001 framework and ISO 42001:2023 alignment, this guide helps Northern BC businesses identify and manage AI-related risks.

The Framework

NC-AI-001 provides a comprehensive AI Risk Register Template with 28 pre-populated risks across 8 categories:

1. **Security and Privacy** - Unauthorized access, data breaches, model theft

2. **Operational Risks** - System failures, integration issues, performance degradation

3. **Strategic Risks** - Market changes, competitive disadvantage, missed opportunities

4. **Compliance Risks** - Regulatory violations, privacy law non-compliance

5. **Financial Risks** - Cost overruns, ROI failures, budget constraints

6. **Reputational Risks** - Negative publicity, brand damage, customer loss

7. **Technical Risks** - Model bias, data quality issues, scalability problems

8. **Human Risks** - Skill gaps, change management, job displacement concerns

Getting Started

For small businesses in Northern BC, start with the Markdown format of NC-AI-001. The template is designed specifically for smaller organizations that don't have dedicated risk management teams.

Key Takeaways

AI risk management doesn't have to be complicated

Start with identifying your top 5-10 highest-priority risks

Document mitigation strategies that fit your business size

Review and update your risk register quarterly

The NC-AI-001 template is available free of charge from the Northern Cascadia Institute of AI Governance.