Identifying and evaluating key terms and risks | AIGP
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Identifying and evaluating key terms and risks: Which assessment activity is this?

AIGP Understanding How to Govern AI Deployment and Use Easy

Reviewing the contract's liability, data-use and scope clauses is identifying and evaluating the key terms and risks in the vendor or licensing agreement.

The question

As part of assessing a procured third-party AI system, a governance team reviews the contract for terms on liability, data use, and permitted deployment scope. Which assessment activity is this?

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  1. Performing continuous monitoring of the deployed system's live output quality
    A valid ongoing control, but monitoring measures behavior after launch rather than examining contract terms.
  2. Identifying and evaluating key terms and risks in the vendor agreement ✓
    Reviewing liability, data-use and scope clauses is exactly evaluating the key terms and risks in the vendor or licensing agreement.
  3. Forecasting secondary or unintended uses of the deployed AI system
    A real governance activity, yet anticipating misuse is distinct from reviewing the procurement contract's terms.
  4. Establishing an external communication plan for affected stakeholders
    A useful artifact, but planning outbound messaging is unrelated to evaluating the vendor agreement's clauses.
The trap
Mistaking contract-term review for an operational or communication activity.

How to remember it

Reviewing the contract's liability, data-use and scope clauses is identifying and evaluating the key terms and risks in the vendor or licensing agreement.

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