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AI Governance Operating Model — ISO 42001 Alignment

This document defines how a centralised AI governance function operates in alignment with ISO 42001:2023 (AI Management System) while leveraging the control framework (guardrails, Judge, HITL) and enterprise AI platforms.


Executive Summary

ISO 42001 establishes requirements for an AI Management System (AIMS)—a structured approach to governing AI across the organisation. This document maps:

  1. ISO 42001 clauses → Framework controls
  2. Centralised governance function → Roles, responsibilities, processes
  3. Platform capabilities → Technical implementation (Bedrock, Databricks, Foundry)
  4. Operating rhythm → Governance cadence and decision rights

Core principle: Centralised policy, federated execution, unified assurance.


ISO 42001 Structure Overview

ISO 42001 follows the Annex SL high-level structure common to all ISO management systems:

ISO 42001 PDCA Cycle

Clause Title Focus
4 Context of the organisation Understand internal/external factors affecting AI
5 Leadership Management commitment and policy
6 Planning Risk assessment and objectives
7 Support Resources, competence, awareness, communication
8 Operation AI system lifecycle controls
9 Performance evaluation Monitoring, measurement, audit, review
10 Improvement Nonconformity, corrective action, continual improvement

Annex A provides AI-specific controls (similar to ISO 27001 Annex A for information security).


Governance Operating Model

AI Governance Operating Model

Three Lines Model for AI

Line Function AI Governance Role
1st Line Business / Engineering Build and operate AI systems; execute controls
2nd Line AI Governance / Risk Set policy; provide oversight; operate assurance
3rd Line Internal Audit Independent assurance; validate effectiveness

Centralised vs Federated

Aspect Centralised (AI Governance Function) Federated (Business Units)
Policy ✅ Sets AI policy and standards Implements policy
Risk framework ✅ Defines risk tiers and methodology Performs risk assessments
Control standards ✅ Defines control requirements Implements controls
Tooling/platforms ✅ Selects and governs platforms Uses platforms
Judge configuration ✅ Defines evaluation criteria May customise for use case
HITL processes ✅ Defines requirements Staffs and operates
Monitoring ✅ Aggregates and reports Monitors own systems
Approval (CRITICAL) ✅ Approves CRITICAL deployments Requests approval
Approval (HIGH) Reviews ✅ Approves with risk sign-off
Approval (MEDIUM/LOW) Spot checks ✅ Self-service with standards

ISO 42001 Clause Mapping

Clause 4: Context of the Organisation

4.1 Understanding the organisation and its context

Requirement Framework Implementation
Identify external factors Regulatory landscape (EU AI Act, sector regulations), competitive environment, technology trends
Identify internal factors AI maturity, risk appetite, existing capabilities, culture

4.2 Understanding the needs and expectations of interested parties

Interested Party Needs/Expectations How Addressed
Regulators Compliance, transparency, human oversight Risk classification, HITL, audit trail
Customers Fair treatment, privacy, accuracy Guardrails, Judge quality monitoring, bias testing
Employees Clear guidance, training, tools Policy, standards, platform governance
Board/Executives Risk management, value delivery Governance reporting, metrics
Data subjects Rights respected, explanations HITL for decisions, documentation

4.3 Determining the scope of the AIMS

Scope statement should define: - Which AI systems are in scope (all? production only? above certain risk tier?) - Which lifecycle stages (development, deployment, operation, retirement) - Organisational boundaries - Exclusions and justifications

4.4 AI Management System

The AIMS comprises: - This governance operating model - The control framework (AI.1–AI.12) - Platform implementations (guardrails, Judge, HITL) - Supporting processes and documentation


Clause 5: Leadership

5.1 Leadership and commitment

Requirement Implementation
Top management demonstrates commitment Board/ExCo AI governance charter
Policy aligned with strategic direction AI strategy linked to business strategy
Integration with business processes AI controls embedded in SDLC, procurement, vendor management
Resources available Funded AI governance function, platform investment
Achieving intended outcomes Metrics and reporting to leadership

5.2 AI Policy

The AI Policy should address:

AI Policy — Key Elements

  1. Purpose and scope
  2. Alignment with organisational values
  3. Commitment to responsible AI principles
  4. Risk-based approach to AI governance
  5. Roles and responsibilities
  6. Compliance with applicable laws and regulations
  7. Commitment to human oversight
  8. Continuous improvement commitment
  9. Review and update cycle

5.3 Organisational roles, responsibilities, and authorities

Role Responsibilities Authority
Board / ExCo Approve AI strategy and policy; oversee AI risk Final accountability
AI Governance Committee Approve CRITICAL deployments; review AI risk posture; escalation body Approval for CRITICAL tier
Chief AI Officer / Head of AI Lead AI strategy and governance function Policy decisions
AI Risk Lead Manage AI risk framework; oversee assessments Risk methodology
AI Ethics Lead Advise on ethical considerations; review sensitive use cases Ethics review
Business Unit AI Leads Implement AI governance in business units; own AI systems LOCAL execution
AI Platform Team Operate AI platforms; implement technical controls Platform standards
HITL Reviewers Review Judge findings; make decisions on flagged items Review decisions

Clause 6: Planning

6.1 Actions to address risks and opportunities

Framework Component ISO 42001 Alignment
AI.2.1 Risk Classification Systematic identification of AI risks
AI.2.2 Risk Assessment Evaluation of likelihood and impact
Risk tier controls Risk treatment through proportionate controls
Judge monitoring Ongoing risk identification

Risk Assessment Integration:

AI Risk Assessment Process

1. Identify

  • Use case analysis
  • Data sensitivity
  • Decision impact
  • Regulatory scope

2. Classify

  • Apply risk tier methodology
  • Document classification rationale
  • Obtain appropriate approval

3. Treat

  • Select controls per tier
  • Implement guardrails, Judge, HITL
  • Document residual risk

4. Monitor

  • Judge ongoing evaluation
  • HITL review findings
  • Periodic reassessment

6.2 AI objectives and planning to achieve them

Objective Category Example Objectives Metrics
Safety Zero critical safety incidents Incident count
Fairness No significant bias in CRITICAL systems Bias metrics
Quality >95% Judge quality scores Quality scores
Compliance 100% regulatory compliance Audit findings
Oversight 100% HITL coverage for CRITICAL HITL coverage
Transparency Documentation complete for all HIGH+ Documentation audit

Clause 7: Support

7.1 Resources

Resource Category Requirements
AI Governance Function Staffed with AI risk, ethics, technical expertise
Platform investment Guardrails, Judge, HITL tooling
HITL capacity Reviewers scaled to volume and SLAs
Training AI governance training for all AI practitioners
External expertise Access to legal, regulatory, ethics advisors

Governance Function Sizing:

Organisation Size AI Portfolio Recommended FTE
Small (<5 AI systems) Low complexity 1-2 FTE (may be part-time)
Medium (5-20 AI systems) Mixed tiers 3-5 FTE
Large (20-100 AI systems) Multiple CRITICAL 8-15 FTE
Enterprise (100+ AI systems) Complex, regulated 15-30+ FTE

7.2 Competence

Role Required Competencies
AI Governance Lead AI/ML fundamentals, risk management, regulatory knowledge
AI Risk Analyst Risk assessment, AI systems, data analysis
AI Ethics Specialist Ethics frameworks, bias assessment, stakeholder engagement
Platform Engineer AI platforms, guardrails implementation, MLOps
HITL Reviewer Domain expertise, judgement, documentation

7.3 Awareness

All personnel involved with AI should be aware of: - The AI policy - Their contribution to AIMS effectiveness - Implications of not conforming - How to report concerns or incidents

7.4 Communication

What Who When How
AI policy All staff Onboarding, annually Intranet, training
Governance requirements AI practitioners Project initiation Standards documents
Risk decisions Stakeholders As needed Governance forum
Performance metrics Leadership Quarterly Dashboard, report
Incidents Affected parties As required Incident process

7.5 Documented information

Document Type Retention Owner
AI Policy Current + 3 years AI Governance
Risk assessments Life of system + 7 years Business owner
Control documentation Life of system + 7 years Platform team
Judge evaluations Per tier (90 days – 7 years) Platform team
HITL decisions Per tier (1 – 7 years) HITL team
Audit reports 7 years Internal Audit

Clause 8: Operation

8.1 Operational planning and control

This is where the framework controls (AI.1–AI.12) are implemented.

AI System Lifecycle Governance:

Stage Governance Activities Controls
Ideation Use case review, initial risk screening AI.2.1
Design Risk assessment, control selection AI.2.2, AI.3
Development Secure development, testing AI.4, AI.5, AI.6
Pre-deployment Security review, approval AI.4.3
Deployment Guardrails, logging enabled AI.7, AI.11
Operation Judge monitoring, HITL review AI.8, AI.9
Change Change assessment, re-approval if needed AI.2, AI.4
Retirement Decommissioning, data retention AI.3

8.2 AI risk assessment

See AI.2 Risk Management controls.

8.3 AI risk treatment

Risk Tier Treatment Approach
CRITICAL Full controls, 100% Judge, 100% HITL decisions
HIGH Full controls, 20-50% Judge sampling, HITL escalation
MEDIUM Standard controls, 5-10% Judge sampling, periodic HITL
LOW Basic controls, optional Judge, spot checks

8.4 AI system impact assessment

For HIGH and CRITICAL systems, conduct: - Fundamental Rights Impact Assessment (FRIA) — required for EU AI Act high-risk - Data Protection Impact Assessment (DPIA) — if personal data involved - Bias and Fairness Assessment — especially for consequential decisions


Clause 9: Performance Evaluation

9.1 Monitoring, measurement, analysis, and evaluation

Governance Metrics Framework:

Category Metric Target Source
Coverage % AI systems in inventory 100% Inventory
Coverage % HIGH+ with guardrails 100% Platform
Coverage % CRITICAL with 100% Judge 100% Platform
Quality Judge quality score (avg) >90% Judge logs
Quality HITL false positive rate <20% HITL records
Timeliness HITL SLA compliance >95% HITL records
Incidents AI safety incidents 0 critical Incident log
Compliance Regulatory findings 0 major Audit reports
Maturity Maturity assessment score Per target Assessment

Governance Dashboard:

AI Governance Dashboard

9.2 Internal audit

Audit Type Frequency Scope Auditor
AIMS audit Annual Full management system Internal Audit
Control effectiveness Annual Technical controls sample Internal Audit / 2nd Line
CRITICAL system review Annual per system Deep dive on CRITICAL systems Internal Audit
HITL quality Quarterly Sample of HITL decisions AI Governance
Judge calibration Quarterly Judge accuracy vs human AI Governance

9.3 Management review

AI Governance Committee — Quarterly Review Agenda:

  1. Performance metrics review
  2. Incident summary
  3. Risk posture update
  4. Regulatory developments
  5. CRITICAL system status
  6. Audit findings and actions
  7. Resource and capability needs
  8. Emerging risks and opportunities
  9. Improvement actions

Clause 10: Improvement

10.1 Continual improvement

Improvement sources: - Judge findings → guardrail updates - HITL feedback → Judge calibration - Incidents → process improvements - Audits → control enhancements - Regulatory changes → policy updates - Technology advances → capability improvements

10.2 Nonconformity and corrective action

Nonconformity Type Example Response
Policy violation AI deployed without approval Stop, assess, remediate, prevent recurrence
Control failure Guardrails bypassed Investigate, fix, strengthen controls
HITL failure SLAs consistently missed Root cause, capacity adjustment
Incident Customer harm from AI output Incident response, customer remediation, process fix

Platform Integration

How Platforms Support ISO 42001

ISO 42001 Requirement Bedrock Databricks Foundry
Risk treatment (8.3) Guardrails AI Gateway + Judge AIP governance
Monitoring (9.1) CloudWatch + custom Unity Catalog + Lakehouse Monitoring Inference history
Audit trail (7.5) Inference logging Inference Tables Audit logs
Human oversight (8.4) Build yourself Review App + Deployment Jobs Ontology workflows
Documentation (7.5) Build yourself MLflow tracking Notepad + Model docs
Change control (8.1) Build yourself Model Registry + Deployment Jobs Versioning + releases

ISO 42001 Platform Architecture


Governance Operating Rhythm

Daily

Activity Owner Inputs
HITL queue processing HITL Reviewers Judge findings
Immediate escalation handling On-call Critical findings
Monitoring review Platform Team Dashboards

Weekly

Activity Owner Inputs
HITL metrics review HITL Lead Queue metrics
Guardrail tuning Platform Team False positive data
Incident triage AI Risk Lead Open incidents

Monthly

Activity Owner Inputs
Portfolio review AI Governance Lead Inventory changes
Metrics reporting AI Governance Lead All metrics
Judge calibration review Platform Team Calibration data

Quarterly

Activity Owner Inputs
AI Governance Committee Committee Chair Performance report
Maturity assessment AI Governance Lead Assessment criteria
Policy review AI Governance Lead Regulatory changes
HITL quality audit AI Governance Sample reviews

Annually

Activity Owner Inputs
AIMS internal audit Internal Audit Full scope
Management review Senior Leadership Annual report
Policy update AI Governance Lead All inputs
External audit (if certified) External Auditor Full scope
Training refresh AI Governance All AI practitioners

Certification Considerations

Preparing for ISO 42001 Certification

Phase Activities Duration
Gap assessment Compare current state to ISO 42001 4-6 weeks
Remediation Close gaps, implement missing controls 3-6 months
Documentation Complete AIMS documentation 2-3 months
Internal audit Verify readiness 2-4 weeks
Management review Confirm readiness 1-2 weeks
Stage 1 audit Documentation review 1-2 days
Stage 2 audit Implementation audit 3-5 days
Certification Certificate issued

Common Certification Gaps

Gap Remediation
Incomplete AI inventory Systematic discovery and registration
Missing risk assessments Retrospective assessments for existing systems
No HITL for CRITICAL Implement HITL processes
Inadequate documentation Document existing practices
No Judge/quality assurance Implement async evaluation
Governance not formalised Establish committee, define roles

Annex A Control Mapping

ISO 42001 Annex A provides AI-specific controls. Here's the complete mapping:

A.2 AI Governance

ISO 42001 Control Framework Mapping Notes
A.2.2 AI policy AI.1.1 AI Policy Framework ✅ Covered
A.2.3 Roles and responsibilities AI.1.2 Governance Structure, AI.1.3 Accountability ✅ Covered
A.2.4 Resources AI.14 Security Awareness (training) ✅ Covered

A.3 AI System Lifecycle

ISO 42001 Control Framework Mapping Notes
A.3.2 AI system inventory AI.3.1 AI System Inventory ✅ Covered
A.3.3 AI system requirements AI.4 Development Security ✅ Covered
A.3.4 Third-party components AI.13 Supplier Management, AI.6 Model Security ✅ Covered

A.4 Risk Management

ISO 42001 Control Framework Mapping Notes
A.4.2 AI risk assessment AI.2.2 Risk Assessment ✅ Covered
A.4.3 AI risk treatment AI.2.3 + Risk tier controls ✅ Covered
A.4.4 Residual risk acceptance Governance approval workflows ✅ Covered

A.5 Data Management

ISO 42001 Control Framework Mapping Notes
A.5.2 Data acquisition AI.5 Data Governance ✅ Covered
A.5.3 Data quality AI.5.2 Data Quality ✅ Covered
A.5.4 Data provenance AI.13.3 Model Provenance (includes data) ✅ Covered
A.5.5 Data preparation AI.5 Data Governance ✅ Covered

A.6 AI Development

ISO 42001 Control Framework Mapping Notes
A.6.2.2 Design AI.4.1 Secure Development ✅ Covered
A.6.2.3 Data processing AI.5 Data Governance ✅ Covered
A.6.2.4 Model building AI.4 Development Security ✅ Covered
A.6.2.5 Validation AI.6.2 Model Validation ✅ Covered
A.6.2.6 Verification AI.4.2 Testing ✅ Covered
A.6.2.7 Deployment AI.4.3 Deployment Security ✅ Covered

A.7 AI Operation

ISO 42001 Control Framework Mapping Notes
A.7.2 Operation and monitoring AI.8 Judge, AI.11 Logging & Monitoring ✅ Covered
A.7.3 Human oversight AI.9 Human Oversight (HITL) ✅ Covered
A.7.4 Explainability AI.3.2 Documentation, Judge reasoning capture ✅ Covered
A.7.5 Bias management AI.8 Judge (bias evaluation), AI.9 HITL ✅ Covered

A.8 AI System Performance

ISO 42001 Control Framework Mapping Notes
A.8.2 Performance monitoring AI.8 Judge, AI.11 Monitoring ✅ Covered
A.8.3 Performance evaluation Judge metrics, calibration ✅ Covered

A.9 AI System Support

ISO 42001 Control Framework Mapping Notes
A.9.2 Change management AI.4.4 Change Management (added) ✅ Covered
A.9.3 Incident management AI.12 Incident Response ✅ Covered
A.9.4 Problem management AI.12, Feedback loops ✅ Covered

A.10 Improvement

ISO 42001 Control Framework Mapping Notes
A.10.2 Corrective action Clause 10 processes, feedback loops ✅ Covered
A.10.3 Continual improvement PDCA cycle, Judge→Guardrail feedback ✅ Covered

Agentic AI Mapping (Framework Extension)

ISO 42001 does not explicitly address agentic AI. The framework extends coverage:

Agentic Concern ISO 42001 Nearest Framework Control
Plan approval A.7.3 Human oversight AG.1.3 Plan Approval
Action constraints A.4.3 Risk treatment AG.2.1-2.4 Execution Controls
Circuit breakers A.8.2 Monitoring AG.2.2 Circuit Breakers
Trajectory evaluation A.8.3 Performance AG.3.2 Trajectory Evaluation
Multi-agent governance A.3.2 Inventory AG.4 Multi-Agent Controls

Cross-Reference: Framework to ISO 42001

Framework Control ISO 42001 Clause ISO 42001 Annex A
AI.1 Governance 5 Leadership A.2
AI.2 Risk Management 6 Planning A.4
AI.3 Inventory & Documentation 7.5 Documented info A.3.2
AI.4 Development Security 8.1 Operational planning A.6
AI.5 Data Governance 8.1 A.5
AI.6 Model Security 8.1 A.6.2
AI.7 Guardrails 8.1 A.4.3, A.7.2
AI.8 Judge 9.1 Monitoring A.8
AI.9 Human Oversight 8.1 A.7.3
AI.10 Agentic Controls — (extension)
AI.11 Logging & Monitoring 9.1 A.7.2, A.8.2
AI.12 Incident Response 10.2 Nonconformity A.9.3
AI.13 Supplier Management 8.1 External provision A.3.4
AI.14 Security Awareness 7.2, 7.3 Competence A.2.4
AI.15 Business Continuity 8.1
AI.16 Intellectual Property 7.5

Summary

Key Success Factors

  1. Executive sponsorship — AI governance needs visible leadership support
  2. Clear accountability — Named owners for AI systems and governance
  3. Proportionate controls — Match controls to risk tier
  4. Platform enablement — Technical controls make governance practical
  5. Feedback loops — Continuous improvement from Judge findings and HITL
  6. Metrics-driven — Measure what matters, report to leadership

The Operating Model in One Page

AI Governance Operating Model Summary

AI Runtime Behaviour Security, 2026 (Jonathan Gill).