14 Developing a risk management plan
A formal, evolving risk management plan is central to responsible GenAI use.
It should include the following.
Risk identification
Highlight risks such as hallucinated outputs, algorithmic bias, IP infringement, data privacy violations, and system failure.
Mitigation strategies
Implement targeted measures:
Use filters and prompt engineering to reduce hallucination.
Audit for bias and diversify training datasets.
Introduce encryption and monitoring for cybersecurity resilience.
Contingency measures
Prepare responses to adverse outcomes (e.g., system suspension, manual override, or legacy process fallback).
Establish regular review cycles informed by incidents, feedback, and regulatory changes.
Actions that help to mitigate risks
You have learnt about some of the risks in this course. The risks presented by GenAI use in organisations include:
Accuracy and reliability.
Privacy.
Client confidentiality.
Intellectual property rights.
Ethics and bias.
Security.
Responsibility.
You have also learnt about some of the proactive steps that can be introduced to mitigate some of these risks.
Identify at least three key actions that can help to mitigate some of these risks and list them below.
Discussion
You should have been able to identify three key actions from the following list:
Implement use policies. Establish clear guidelines for appropriate and inappropriate use of GenAI tools within the organisation.
Conduct risk assessments. Regularly assess potential risks like data leakage, IP exposure, bias, and misinformation from GenAI outputs.
Train staff on responsible use. Provide basic training on prompt design, verifying GenAI outputs, and ethical considerations.
Restrict sensitive data input. Introduce controls to prevent confidential or personal data from being fed into GenAI systems.
Set up review and oversight processes. Mandate human review for high-stakes content generated by AI (e.g., legal, medical, or HR communications).
Reflection
13 The GenAIUM framework
