Escalate unresolved risk to an authorized accountable | AIGP
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Escalate unresolved risk to an authorized accountable: Which governance arrangement is required before

AIGP Understanding the Foundations of AI Governance Medium

Unresolved risks must reach someone authorized to require controls, allocate resources, or accept residual exposure.

The question

A company is procuring AI software for contract review. Procurement and legal teams agree on the business case, but unresolved concerns remain about missing audit records. The operating team cannot authorize the necessary controls or accept the residual risk. Which governance arrangement is required before approval?

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  1. Delay all governance review until after implementation testing.
    Postponing escalation leaves an identified authority and control gap unresolved during the approval decision.
  2. Let procurement approve while documenting the unresolved concern.
    Documentation alone does not cure the absence of authority to accept or remediate the unresolved auditability risk.
  3. Escalate unresolved risk to an authorized accountable decision-maker. ✓
    Escalation is necessary because the operating team lacks authority to resolve controls or accept the remaining procurement risk.
  4. Ask the vendor to decide whether audit records are sufficient.
    The vendor may explain capabilities, but organizational decision authority for residual risk remains internal.
The trap
If the current team cannot require controls or accept risk, escalate before approval.

How to remember it

Unresolved risks must reach someone authorized to require controls, allocate resources, or accept residual exposure.

How many of these would you get right?

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