Retain accountability for assessing and managing | AIGP
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Retain accountability for assessing and managing: Which governance requirement remains with the company?

AIGP Understanding How to Govern AI Deployment and Use Medium

Contractual risk allocation does not transfer the company’s accountability for assessing and managing its operational deployment.

The question

An energy company’s maintenance contract says the supplier bears losses caused by model defects. The company changes from pilot scheduling to dispatching crews based on model recommendations. Which governance requirement remains with the company?

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  1. Require the supplier to provide a broader performance warranty.
    Broader assurance may add evidence, but cannot replace company-specific assessment and management of dispatch consequences.
  2. Confirm the supplier’s contractual indemnity remains effective.
    Indemnity allocates financial risk, but does not establish that the company has assessed or managed its operational deployment risks.
  3. Transfer operational acceptance decisions to the supplier’s quality team.
    Supplier input may assist, but outsourcing acceptance would not remove the company’s responsibility for its own changed deployment.
  4. Retain accountability for assessing and managing the deployment. ✓
    Changing to operational dispatch requires the company to evaluate context, controls, residual risks, and deployment decisions despite contractual allocation.
The trap
A contract may allocate costs or tasks; it does not automatically transfer accountability for the organization’s own operational decision.

How to remember it

Contractual risk allocation does not transfer the company’s accountability for assessing and managing its operational deployment.

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