Supplier incidents may remain undiscovered or unreported | AIGP
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Supplier incidents may remain undiscovered or unreported: What specific risk remains?

AIGP Understanding the Foundations of AI Governance Hard

Internal policy coverage does not close the supplier gap: incidents may remain unknown or unreported, delaying response to exposed financial documents.

The question

A financial-document processor extends its internal security policy to cover prompts, outputs, and retention. A cloud supplier still has no contractual incident-notification duty, and the company lacks evidence about the supplier’s monitoring. What specific risk remains?

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  1. The company should prohibit all cloud processing until a new security framework is adopted.
    A broad prohibition is not required by the facts and avoids specifying controls for supplier visibility, notification, and response.
  2. Employees may require refresher training on the revised internal policy.
    Training supports implementation, but it does not resolve the supplier’s missing notification duty or unknown monitoring capability.
  3. The revised policy should require employees to approve every document-processing prompt manually.
    Manual prompt approval does not provide supplier incident visibility and may address a different risk than external monitoring and notification.
  4. Supplier incidents may remain undiscovered or unreported, delaying response to document exposure. ✓
    Without supplier notification and monitoring evidence, the company may lack timely awareness of incidents involving sensitive financial documents.
The trap
Map each mitigation to its owner; an internal control does not automatically govern a supplier’s detection or notification duties.

How to remember it

Internal policy coverage does not close the supplier gap: incidents may remain unknown or unreported, delaying response to exposed financial documents.

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