Compliance
Materiality Assessment
Risk-based determination of an AI application's significance.
Definition
A structured evaluation of an AI use-case across multiple risk dimensions (financial, operational, compliance, model integrity, data protection, reputational and conduct risk) to determine the level of controls and governance proportionate to the application's potential impact.
Related Terms
materiality
Impact on customers, operations, financial soundness or market integrity....
Material AI Portfolio
Collection of AI systems material to an entity's operations or risk profile....
material impact
Customer or market-facing effects causing measurable harm....
Risk classification (of AI applications)
Assessment of AI applications by materiality and risk factors....
Material AI system
An AI application with significant impact or regulatory relevance....