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AI Governance Training for Executives: The Decisions Only the Board Can Make

What Directors Are Personally Accountable For When AI Fails

Quiz: What Directors Are Personally Accountable For When AI Fails

Setting AI Risk Appetite in Terms the Business Can Apply

Quiz: Setting AI Risk Appetite in Terms the Business Can Apply

Board Level AI Governance Structures That Do Not Slow Delivery

Quiz: Board Level AI Governance Structures That Do Not Slow Delivery

Reading an AI Risk Report Without a Technical Background

Quiz: Reading an AI Risk Report Without a Technical Background

The Regulatory Duties That Reach the Boardroom in 2026 and 2027

Quiz: The Regulatory Duties That Reach the Boardroom in 2026 and 2027

Approving or Rejecting an AI Use Case: A Board Decision Checklist

Quiz: Approving or Rejecting an AI Use Case: A Board Decision Checklist

AI in Annual Reports, Investor Disclosure and Market Statements

Quiz: AI in Annual Reports, Investor Disclosure and Market Statements

Third Party Model Dependence and Concentration Risk

Quiz: Third Party Model Dependence and Concentration Risk

Insurance, Indemnities and Liability When AI Causes Loss

Quiz: Insurance, Indemnities and Liability When AI Causes Loss

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Quiz: Third Party Model Dependence and Concentration Risk

AI Governance Training for Executives: The Decisions Only the Board Can Make
Third Party Model Dependence and Concentration Risk
Quiz: Third Party Model Dependence and Concentration Risk

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Question 1 of 5

1. Question

What is concentration risk in the context of AI model dependence?

Risk that too many models are used at once
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Risk that a company depends on a single supplier or provider for a critical capability
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Risk that models are concentrated in one geographic region
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Only applies to financial institutions
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Question 2 of 5

2. Question

If a company’s application depends entirely on OpenAI’s API, what financial risk does this create?

No financial risk; APIs are free
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Pricing increases or service changes create business model risk
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The only risk is reputational if OpenAI is controversial
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Risk only exists if the application fails
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Question 3 of 5

3. Question

What is the strongest mitigation for third-party model dependence?

Doing nothing and hoping the provider remains stable
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Using multiple models from different providers so the company can switch if one fails
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Only using open-source models
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Signing a long-term contract
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Question 4 of 5

4. Question

Why might a company fine-tune a third-party model rather than use it as-is?

Fine-tuning is required by all vendors
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Fine-tuning on company data creates some resilience and optionality if the base model changes
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Fine-tuning has no advantages and should be avoided
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Fine-tuning locks the company into the model permanently
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Question 5 of 5

5. Question

What should a board ask about third-party model dependence?

Nothing; this is a technical question for engineers
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What models do we depend on? What happens if pricing doubles? Can we switch? Is there a plan?
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Only whether the model works correctly
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Whether competitors use the same model
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