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Understanding and Managing AI Risk & Shadow AI in Organizations

Identifying, Assessing, and Controlling AI Risks for Responsible and Secure AI Adoption

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Why Choose Us

The Understanding and Managing AI Risk & Shadow AI in Organizations training course provides risk, governance, compliance and technology professionals with a structured framework for responsible AI risk management. It explains how to identify, assess, manage and govern AI risks, with particular attention to the growing challenge of Shadow AI. These exposures can be organisational, ethical, legal and reputational, requiring effective governance before incidents occur. Participants gain the knowledge, tools and governance frameworks needed to manage AI risk responsibly and effectively.

AI risk is already an operational reality rather than a matter for future consideration. Current concerns include biased decision-making, data privacy breaches and employees using unmanaged generative AI tools without oversight. Shadow AI, meaning informal and unapproved AI use across business units, is among the most significant and least understood risk vectors. Coverage includes AI risk categories, Shadow AI identification and assessment, acceptable-use policies, human-in-the-loop controls and third-party vendor risk. It also addresses incident response, governance frameworks and a capstone action-planning exercise through real-world scenarios and practical governance application.

This Understanding and Managing AI Risk & Shadow AI in Organizations training course will highlight:

  • Identifying and assessing key categories of AI risk
  • Recognising and evaluating Shadow AI across business units
  • Establishing acceptable-use policies for AI tools
  • Applying human-in-the-loop controls to AI activities
  • Managing third-party AI vendor risk and incident response
  • Developing governance frameworks and practical action plans
Why Choose Understanding and Managing AI Risk & Shadow AI in Organizations
Course Goals

What are the Goals?

The Understanding and Managing AI Risk & Shadow AI in Organizations Course aims to build comprehensive capabilities in AI risk management and Shadow AI governance — beginning with risk fundamentals and category evaluation, then progressing through identification, control design, and integration with enterprise risk.

Upon completing this course, participants will be able to:

  • Describe the definitions, scope, and drivers of AI risk and differentiate AI risk from IT risk and digital risk
  • Describe Shadow AI — including its causes, examples, distinctions from Shadow IT, and reasons for emerging in organisations
  • Assess the complete spectrum of AI risk categories, including strategic, operational, data privacy, cybersecurity, ethical, legal, and reputational risks
  • Evaluate how Shadow AI increases organisational exposure to AI risk and apply insights gained from actual AI risk incidents
  • Chart AI use throughout business units, detect informal and unauthorised AI usage, and categorise AI risk through structured assessment methodologies
  • Perform AI and Shadow AI risk assessments, including impact and likelihood analysis, risk registers, and the evaluation of generative AI tools
  • Create AI acceptable-use policies, data governance controls, HITL and HOTL frameworks, monitoring protocols, and approaches to vendor AI risk management
  • Create an AI risk and Shadow AI management roadmap and a comprehensive action plan for implementation in their own organisation

Who is this Training Course for?

This Understanding and Managing AI Risk & Shadow AI in Organizations training course is designed for:

  • Chief Information Officers
  • Chief Technology Officers
  • Chief Information Security Officers
  • AI Governance Managers
  • Information Security Managers
  • IT Risk Managers
  • Enterprise Risk Managers
  • Data Protection Officers
  • Compliance Managers
  • Internal Auditors
  • IT Governance Specialists
  • Enterprise Architects
Learning Approach

How will this Training Course be Presented?

The Understanding and Managing AI Risk & Shadow AI in Organizations Course uses a structured, practice-intensive learning methodology that progresses from AI risk fundamentals and Shadow AI concepts to risk category analysis, assessment methods, control design, and governance framework development, concluding with a capstone exercise in which delegates produce a comprehensive AI risk and Shadow AI management action plan.

Real-world AI risk incident case studies, risk assessment workshops, policy development exercises, and governance mapping sessions are incorporated across each day, enabling delegates to relate the frameworks to the actual risk management challenges within their own organisational settings.

Delivery approaches include:

  • Instructor-led sessions addressing AI risk definitions, Shadow AI concepts, risk category frameworks, and governance principles
  • AI risk category analysis sessions exploring strategic, operational, data privacy, cybersecurity, ethical, legal, and reputational types of risk
  • Shadow AI identification and mapping workshops that apply indicators, warning signs, and risk classification to realistic AI usage scenarios
  • AI risk assessment workshops involving impact and likelihood analysis, risk register creation, and the evaluation of risks associated with generative AI tools
  • A capstone action-planning exercise focused on creating a complete, organisation-specific action plan for managing AI risk and Shadow AI

The Course Content

Foundations of AI Risk and Shadow AI

  • Overview of Artificial Intelligence in modern organizations
  • How AI is used across operations, services, and decision-making
  • Understanding AI risk: definitions, scope, and drivers
  • Differences between IT risk, digital risk, and AI risk
  • Introduction to Shadow AI: concepts, causes, and examples
  • Shadow AI versus Shadow IT
  • Why Shadow AI emerges in organizations
  • Introduction to AI governance and accountability
  • Discussion: Identifying AI and Shadow AI use within participants’ organizations

AI Risk Categories and Organizational Impact

  • Strategic and decision-making risks
  • Operational and performance risks
  • Data privacy and confidentiality risks
  • Cybersecurity and intellectual property risks
  • Ethical, bias, and fairness risks
  • Legal and regulatory compliance risks
  • Reputational and trust-related risks
  • How Shadow AI amplifies AI risk exposure
  • Case Study: Lessons learned from AI risk incidents

Identifying and Assessing AI & Shadow AI Risks

  • Mapping AI use across business units
  • Identifying informal and unapproved AI usage
  • Indicators and red flags of Shadow AI
  • Risk classification of AI use cases
  • AI risk assessment methodologies
  • Impact and likelihood analysis
  • Risk registers and documentation requirements
  • Assessing risk in generative AI tools
  • Workshop: Conducting an AI and Shadow AI risk assessment

Managing and Controlling AI Risk

  • Principles of risk-based AI governance
  • AI acceptable-use policies and employee guidelines
  • Managing employee use of generative AI
  • Data governance and access controls
  • Human-in-the-loop (HITL) and human-on-the-loop (HOTL) controls
  • Monitoring, logging, and auditability
  • Managing third-party and vendor AI risks
  • Incident response and escalation for AI misuse
  • Workshop: Designing AI risk controls and mitigation actions

Governing Shadow AI and Embedding AI Risk Management

  • Shadow AI as a governance and cultural challenge
  • Bringing Shadow AI into controlled environments
  • Approved AI tools, platforms, and innovation sandboxes
  • Roles, responsibilities, and accountability for AI risk
  • Integrating AI risk into enterprise risk management (ERM)
  • Aligning AI risk management with ESG and organizational values
  • Measuring AI and Shadow AI risk maturity
  • Developing an AI risk and Shadow AI roadmap
  • Capstone Exercise: Creating an AI risk and Shadow AI management action plan
  • Course review and implementation next steps
Recognition

Certificate

  • • Wallstreet Development Academy Certificate of Completion for delegates who attend and complete the training course.

Frequently Asked Questions

You will learn how organizations can identify, assess, and control risks associated with AI and shadow AI. The course focuses on supporting responsible and secure AI adoption. It provides an organizational perspective on managing AI-related risk.
Shadow AI is treated as an organizational AI risk that needs to be understood and managed. The course examines it alongside broader risks arising from AI adoption. Its focus is on identifying, assessing, and controlling these risks responsibly and securely.
The course supports responsible AI adoption by focusing on how AI risks can be recognized, evaluated, and controlled. It places these activities in an organizational context and includes shadow AI within its scope. This helps connect AI adoption with active risk management.
The training builds skills in identifying, assessing, and controlling AI risks in organizational settings. It also develops understanding of shadow AI as a risk management concern. These skills are aligned with responsible and secure AI adoption.
The course covers the identification, assessment, and control of AI risks within organizations. It also addresses shadow AI as part of the broader AI risk landscape. The content is centred on responsible and secure organizational adoption of AI.
The course focuses on three core activities: identifying AI risks, assessing them, and applying appropriate controls. This structured approach includes risks linked to shadow AI. The overall aim is to support responsible and secure AI adoption in organizations.
The course addresses secure AI adoption through the identification, assessment, and control of AI-related risks. It includes attention to shadow AI, which forms part of the organizational risk environment. The emphasis is on managing risk as organizations adopt and use AI.
The course is focused on AI risk within organizations rather than on training for a specific AI tool. It addresses both general AI risks and shadow AI. The emphasis is on organizational approaches to identifying, assessing, and controlling risk.