Rethinking Risk: Why Your AI Strategy Needs More Than a Spreadsheet

By Karl George MBE, The Governor, Founder of Governance AI

Let’s face it, most risk frameworks weren’t designed for this. They were meant for a slower,more predictable worldone where you updated your risk register quarterly and hoped nothingdrastic occurred in the meantime. But that approach no longer suffices in theIntelligenceAge.

AI operates at rapid speed. It evolves, adapts, and learns in ways traditional risk modelscannot keep up with. As highlighted inGoverning the Intelligence Age: LeadershipImperatives in the Reset Revolution, this is not just another technological shift; it is acognitive transformation. We have entered theReset Revolution, a new era whereintelligence is being redefined, scaled, and deployed across every aspect of society

From Risk Register to Risk Radar

You’re falling behind if your AI risk strategy depends on a static spreadsheet. As McKinseypoints out, “small AI mistakes can escalate into systemic failures with lightning speed.” AIisn’t fixed; it drifts, adapts, and sometimes hallucinates. That means yesterday’s risk controlsmight be useless by next quarter.

Instead of a static risk register, organisations now require adynamic AI risk radar,anactive, multidisciplinary approach that constantly monitors for legal, ethical, operational, andreputational threats. PwC advises integrating AI risk into your enterprise governanceframework, not as an IT concern, but as a strategic issue atthe board level.

What Rethinking Risk Looks Like

Rethinking AI risk means:

• Prioritising real-time monitoring over annual reviews
• Blending technical, ethical, and strategic lensesin your oversight

Raising AI risks from the IT department to the boardroom

Considering bias, explainability, and model drift as essential business issues, not merelytechnical challenges

It also involves accepting that some risks are inherently unknowable. The true risk lies infailing to develop the ability to respond and adapt swiftly.

This Is the Intelligence Age–Act Like It

In the Intelligence Age, AI systems aren’t just tools for decision-makers, strategy influencers, and public-facing actors. They don’t just accelerate processes; they completely transform the landscape.

That’s why your risk approach must also evolve. This isn’t about completely overhauling governance overnight, but it is about recognising that you need a new mental model based on agility, ethics, foresight, and strategic alignment. As the Governance AI White Paper clarifies, “the cost of inaction, measured in missed opportunities, amplified risks, and eroded stakeholder trust, is substantial.”

So ask yourself: Is your AI governance ready for the Reset? Or are you governing 21st-century intelligence with 20th-century tools?