ESG Webinar – AI Risk Management

The Executive Study Group (ESG) webinar named “AI Risk Management – Agentic AI Risk Taxonomy: Practical Explanations and Management Actioins” was held by Asia Pacific Institute for Strategy Limited (APIFS) on 20^th Oct 2026. The webinar aims to introduce different categories of Agentic AI Risk. 

Firstly, Dr. Mark Lee explains what "AI agents" are: unlike chatbots, these are systems capable of performing various tasks—effectively serving as a "digital labor." However, it may cause risk such as chatbot offering a car for $1 and airline held liable for hallucinated refund polices.

Then he discussed a classic dilemma of the trolley problem for AI that is ethical challenges.

After that Dr. Lee gave a polling to ask us what is the biggest difficulty for AI agents in our company. Most participants selected business risk exposure (33%).

And then he introduced seven categories of Agentic AI Risk including 1. Financial Risk, 2. Operational Risk, 3. People Risk, 4. Regulatory Risk, 5. Reputational Risk, 6. Strategic Risk, & 7. Accelerated Risks.

There are four levels of control strict to loose that are Human-Only, Human in the Loop (HITL), Human on the Loop (HOTL) to AI Agent Auto. 

One of examples from The Economist that AI Agent answer customer but not understood human nature language real meaning of “I hope our paths cross again”. And then Agent arranged they met in foreign country again!

The last type of risk is "accelerated risk," which may arise during the handover process between agents. Dr. Lee asked us had better register everything from agents’ works. 

Finally, Dr. Mark Lee summarized the four points we had arrived at and they were “Autonomy is a Spectrum”, “Seven Risk Categories”, “Supervision Scales with Stakes” and “Accountability Stays Human”. 

Lastly, he introduced APISL service for Corporate AI Risk Assessment and Advisory Program.

Reference:

Asia Pacific Institute for Strategy Limited (亞太策略研究所有限公司) – www.apifs.org

ESG facebook - https://www.facebook.com/groups/esg08

Leader 2030 - Empowering the Next Generation of Leaders - https://www.apifs.org/Leader2030-en

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