(00:00:00) Welcome to Data Science Dot Show

(00:00:27) AI on the Balance Sheet: A Boardroom Perspective

(00:00:45) The Six Million Dollar Model Error

(00:01:18) Translating Model Risk into ERM Language

(00:02:15) Unpacking the Mini Case: A Step-by-Step Analysis

(00:03:06) Mapping AI Risk to ERM Categories

(00:03:51) Key Metrics for AI Risk Assessment

(00:05:11) Mitigating AI Risk: Three Levers

(00:05:58) Leadership and Decision Rights in AI Risk Management

(00:06:44) A Prioritized Playbook for AI Risk Management

Boards often treat AI as a technical issue rather than a balance-sheet exposure. In this 20-minute executive monologue Mirko reframes AI as an enterprise risk that must be managed inside ERM. The episode opens with a concrete mini-case — a hypothetical pricing-model error that shaved 3% off a quarterly revenue number (for example, roughly $6M on a $200M quarter) — to show how model failures translate to dollars and timelines. Mirko then walks executives through mapping model, data, vendor, and operational risks to standard ERM categories and translates key metrics into plain English (e.g., loss-velocity = how fast an error becomes a financial loss). Listeners receive a prioritized 30–90 day playbook and a downloadable AI-ERM Board Pack: one-page PDF heatmap, Excel metric template, and checklist to use with audit committees. Tone is pragmatic and executive-first: convert technical gaps into budget asks, insurance choices, and clear decision rights.

Become a supporter of this podcast: https://www.spreaker.com/podcast/datascience-show-podcast--6817783/support.

I share practical AI leadership notes on LinkedIn — the kind you can forward internally or reuse in executive discussions.
Follow Mirko on LinkedIn if you want decision-ready frameworks, not hype.