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Ch 25: AI Governance & Ethics - Introduction

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You can read this content here on the web. To run the code interactively, either use the Playground or clone the repo and open chapters/chapter-25-ai-governance-and-ethics/notebooks/01_risk_classification.ipynb in Jupyter.


Chapter 25: AI Governance & Ethics — Notebook 01 (Risk Classification)

Governance begins by asking how risky a system is. We implement a transparent, rule-based risk classifier and a likelihood × severity matrix.

What you'll learn

Topic Section
The EU AI Act risk tiers §1
A rule-based classifier §2
Likelihood × severity matrices §3

Time estimate: 2 hours


Key concepts

  • Risk tiers — minimal, limited, high, unacceptable.
  • Transparency — governance rules must be explainable, not black boxes.
  • High-risk domains — employment, credit, biometrics, law enforcement.
  • Risk matrix — combine probability and impact into one level.

A transparent, rule-based risk classifier assigns each system a regulatory tier, and a likelihood × severity matrix prioritizes mitigations. Governance starts with knowing how risky a system is.

Run the full notebook in the chapter folder for code and outputs.


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