Strategic Focus: Regulatory Radar And The Next Wave Of AI Risk Compliance

Published 16 October 2024 by Renee Murphy & Katelyn Johnson &
AI For Risk Management Compliance Risk Risk Management Risk Management Strategic Focus

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Executive Summary

The EU’s Artificial Intelligence Act took effect on August 1, 2024, with firms facing enforcement around most requirements from August 1, 2026. The regulation transcends borders, applying to systems used in the EU, regardless of whether the providers, deployers, importers or distributors are based in the region themselves. With AI having rapidly permeated business activities and tasks, firms must now consider the implications of the EU AI Act and understand how to remain compliant. In this report, we provide risk and compliance executives with an overview of the Act and offer guidance on how to manage these new compliance risks.

Table of contents

Navigating the EU AI Act: a guide to AI compliance and risk
Businesses need to adapt – and governance is the answer
Risk management looms large in the legislation
Risk management is both a requirement – and the solution

Table of figures

Figure 1. The EU AI Act categorizes AI implementations into four risk categories

About the authors

Renee Murphy

Principal Analyst
Renee Murphy is a Principal Analyst in the Risk Management practice at Verdantix. Her current research targets GRC, with a particular focus on the integration of ESG into GRC. Prior to joining Verdantix, Renee was Chief Evangelist at Diligent Software; she also worked at Forrester for a decade, where she was Principal Analyst, covering risk management, audit and sustainability management.

Katelyn Johnson

Senior Manager, Risk Management
Katelyn is the Senior Manager in the Verdantix Risk Management practice. Her current research agenda focuses on climate risk and its integration into risk management frameworks. Prior to joining Verdantix, Katelyn was a climate scientist at GNS Science in New Zealand. She has previously held roles in the energy industry, where she helped projects manage risk due to weather and ocean phenomena. Katelyn holds a PhD in Geology from Victoria University of Wellington and an MS in Earth Sciences from Ohio State University – both focusing on climate science – as well as a BS in Meteorology from Texas A&M University.

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