Governance should be scaled and shaped to fit each: Which statement best captures this guidance?

AI governance should be calibrated to each organization's size, maturity, industry, objectives and risk tolerance.

The question

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1. Every organization must adopt an identical governance model regardless of its size or industry sector

   Plausible but wrong: a one-size-fits-all model contradicts differentiating by size, industry and risk tolerance.
2. Only the largest enterprises need any AI governance, while smaller firms can safely skip it entirely

   Plausible but wrong: governance scales to context but is not reserved solely for large enterprises.
3. Risk tolerance is entirely irrelevant to governance design once a company selects a recognized AI framework

   Plausible but wrong: risk tolerance is an explicit factor shaping the governance approach, not irrelevant.
4. Governance should be scaled and shaped to fit each organization's context, maturity and risk tolerance ✓

   Correct: governance is calibrated to the organization's size, maturity, industry and risk tolerance rather than uniform.

How to remember it

AI governance should be calibrated to each organization's size, maturity, industry, objectives and risk tolerance.

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