Your ERM framework is not broken; it was built for a different kind of system.
Traditional enterprise risk management does many things brilliantly.
But it rests on assumptions that generative AI and foundation models quietly violate:
1. The deterministic assumption - Same input, same output. Probabilistic systems do not behave that way.
2. Static risk categorisation - Annual risk registers cannot track risks that mutate quarterly.
3. The temporal mismatch - Model failures propagate in minutes; governance cycles run in months.
4. The explainability gap - You cannot fully audit a decision no human can fully reconstruct.
5. Systemic concentration blindness - Your biggest AI dependency may sit outside your risk register entirely.
The answer is not to throw ERM away.
It is to augment it, deliberately and enterprise-wide.
That is the whole premise of Enterprise-wide AI Risk Management® (EW-AiRM®) www.ewairm.com, and discussed in greater detail in the forthcoming Wiley book.
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