AI Risk Reporting

AI risk reporting encompasses the systematic identification, assessment, and communication of potential harms and failures associated with artificial intelligence systems. This includes documenting technical risks like model bias and performance degradation as well as business risks such as regulatory penalties and reputational damage. For enterprises, robust AI risk reporting is essential for board-level transparency, regulatory compliance, and enabling informed decision-making about which AI deployments warrant additional controls or limitations.

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ResearchGlobal2026-06-10

NACD Calls on Boards to Restructure AI Oversight, Flagging Bias, Hallucination, and Privacy as Core Governance Risks

The National Association of Corporate Directors published guidance in January 2025 recommending that boards adapt existing oversight structures to accommodate AI adoption. The guidance calls for strengthened cross-functional review, clearer risk reporting lines, and greater transparency around AI initiatives, with specific attention to bias management, hallucination risk, privacy, and ongoing monitoring of how AI reshapes enterprise risk profiles.

board oversight corporate governance AI risk reporting bias management hallucination risk