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ISO/IEC 23894 · Guidance on AI risk management

ISO 23894 AI risk management and requirements, turned into a risk process your AI teams actually follow.

ISO/IEC 23894 is the international guidance on managing the risks that come with developing, deploying or using artificial intelligence. It adapts the ISO 31000 risk framework to AI, and it is guidance only: nobody is certified to it. Sterling's expert and experienced consultants set your AI risk criteria, run the first assessment with the people who own each system and connect the treatment decisions to your governance, or to an ISO/IEC 42001 management system where a certificate is wanted. We help our clients put it into practice and prove it.

  • Fixed scope, one proposal: consulting, Effivity software, Sterling Academy access and internal auditor training, as applicable to your standard, in one proposal
  • A team of expert and experienced risk and governance consultants, working with management system and risk frameworks across sectors and countries since 2003
  • The Sterling Promise: 100% on-time completion, 100% success, 8,100+ client engagements. There is no ISO/IEC 23894 certificate; where you choose ISO/IEC 42001, an accredited body audits and decides, and Sterling does not certify

8,100+ client engagements in 60+ countries.

AI governance client experience
  • Allianz
  • Emirates Flight Catering
  • Etihad Rail
  • Haier
  • Whirlpool
  • Emerson
  • Olam
  • Piramal Pharma Solutions

What it is

What is ISO 23894 AI risk management and what is it used for?

ISO/IEC 23894 gives organisations a structured way to manage risk that arises specifically from artificial intelligence. It was prepared by ISO/IEC JTC 1/SC 42, the joint committee responsible for AI standards, and it applies whether you build models, embed AI in a product, or rely on AI services bought from a supplier. Its stated aim is to help you integrate risk management into AI-related activities and functions, rather than treating AI as a separate compliance exercise.

The document is written to sit on top of ISO 31000:2018. It mirrors the ISO 31000 clause structure and, where AI changes the picture, refers to the relevant ISO 31000 clause and adds AI-specific guidance. For a business that already manages enterprise risk to ISO 31000, that design is the practical advantage: AI risk becomes an extension of an existing method, with its own objectives, risk sources and life-cycle touchpoints, not a parallel register nobody reconciles.

Current edition. ISO/IEC 23894:2023, the first edition, published in February 2023, 26 pages. ISO lists it as under systematic review; no new edition has been announced. In Europe it has been adopted as EN ISO/IEC 23894:2024. It is guidance, so there is no transition timetable and no certificate to maintain. ISO/IEC 42001, the certifiable AI management system standard

Who it is for

Who needs ISO 23894?

No law or scheme makes ISO/IEC 23894 compulsory. Organisations adopt it because they need a defensible, repeatable way to decide which AI risks are acceptable, and to show others how those decisions were made. The four situations we see most often:

  • A customer asks how you control your AI. Enterprise buyers now send AI questionnaires with their due diligence. A documented risk process aligned to the international guidance gives your answers substance, and the records to back them.
  • A tender or partner expects recognised practice. Public and private procurement increasingly asks suppliers to explain AI risk controls. Alignment with ISO/IEC 23894, or certification to ISO/IEC 42001 using it as the method, answers that in terms evaluators understand.
  • A regulator or board wants AI risk on the record. Where AI rules or sector supervisors expect risk management for AI systems, an established method helps; we work alongside your legal advisers on what the applicable law itself requires.
  • A group company needs one approach across entities. Subsidiaries adopting AI at different speeds benefit from shared risk criteria, one register format and a common way of escalating decisions to group risk.

What you gain is clarity about AI risk and evidence that it is managed. That depends on the method being used by the teams who design and run the systems, not on a policy document.

Requirements

What are the ISO 23894 requirements?

Strictly, ISO/IEC 23894 contains recommendations rather than certifiable requirements, because it is guidance. Its content follows the ISO 31000 pattern of principles, framework and process, with three informative annexes. At title level:

  • Principles of AI risk management: the ISO 31000 principles, with the considerations AI adds to some of them.
  • Framework: leadership and commitment, integration, design (context, commitment, roles, resources, communication), implementation, evaluation and improvement of AI risk management.
  • Communication and consultation: involving the right internal and external stakeholders throughout the process.
  • Scope, context and criteria: defining the scope, understanding the external and internal context and setting risk criteria.
  • Risk assessment: identification of assets, risk sources, events, controls and consequences, followed by analysis of consequences and likelihood, and evaluation.
  • Risk treatment: selecting treatment options, then preparing and implementing treatment plans.
  • Monitoring, review, recording and reporting: keeping the assessment current and the decisions traceable.
  • Annexes A, B and C: common AI-related objectives, AI risk sources, and an example mapping of the process to the AI system life cycle.

What does useful ISO 23894 evidence look like?

An inventory of AI systems in scope with owners, approved risk criteria, a register showing each identified risk with its source, consequence and likelihood, treatment decisions signed by the accountable person, and review records that show reassessment when a model, data set or use changes. We keep this in Effivity from the first workshop, so the trail is complete without a separate documentation effort.

Implementation route

How do you implement ISO 23894?

Because there is no certificate, the route is implementation and demonstrable use. Sterling builds the method with you and runs it until your teams operate it on their own; if you also want independent assurance, the route continues into ISO/IEC 42001 certification with an accredited certification body.

  1. 01
    Map your AI and agree the scope.List the AI systems you develop, deploy or use, who owns each one and which decisions or customers it affects.
  2. 02
    Gap analysis against the guidance.Compare current risk practice with the principles, framework and process of ISO/IEC 23894 and agree actions, owners and dates.
  3. 03
    Set the framework and criteria.Define roles, risk criteria and escalation, and connect them to your enterprise risk method and life-cycle checkpoints.
  4. 04
    Run the first assessment and treatment cycle.Workshops with system owners identify, analyse and evaluate risks; treatment plans are approved and tracked to completion.
  5. 05
    Monitor, review and, if wanted, certify.Reassess on change and on schedule, report to management, and where assurance is needed prepare the ISO/IEC 42001 system for its certification audit.

Check the route before you sign. Anyone offering an "ISO 23894 certificate" is offering something no accredited scheme provides. If independent assurance matters, ask which certification body would audit ISO/IEC 42001, confirm its accreditation for that standard with the accreditation body, and check the recognition under the Global ACI arrangement. How to verify an ISO/IEC 42001 certificate

Cost

How much does ISO 23894 implementation cost?

The effort follows your AI footprint, not a price list. A firm using two supplier AI tools needs a lighter framework than a developer releasing its own models to customers. Your proposal shows each component and one all-inclusive proposal.

Cost componentWhat affects it
Consulting and implementationNumber and complexity of AI systems, existing risk maturity, and whether you choose Design™ or Drive™
Independent assurance, if chosenOnly where ISO/IEC 42001 certification is added: the certification body's audit days, sites and surveillance
Internal resourcesTime from system owners, data and engineering leads, risk, legal and management
Software and learningEffivity and Sterling Academy access included in the engagement, with users and access period set out in the proposal
Continued supportPeriodic reassessment, new AI systems joining the scope and reviews under Sustain™

What moves the effort

  • How many AI systems are in scope, and whether you build or only use them
  • Whether an enterprise risk method already exists
  • The number of entities, countries and business units involved
  • Sensitivity of the decisions and people the AI affects
  • Whether ISO/IEC 42001 certification is part of the plan

What a Sterling proposal always shows

  • Scope, deliverables, assumptions and exclusions in writing
  • Certification-body fees separate, where certification is chosen
  • Effivity, training and Academy access itemised at no additional cost
  • Milestones linked to deliverables
  • A single all-inclusive proposal

Timeline

How long does ISO 23894 implementation take?

A first complete cycle, from scoping to approved treatment plans, typically takes two to four months, as an estimate that depends on how many systems are in scope and how quickly owners are available. The method is only proven once it has been repeated on a change, so we plan the first reassessment into the timeline.

PhaseWhat determines the pace
Inventory and gap analysisHow quickly AI use can be identified, including tools bought by individual departments
Framework and criteriaManagement decisions on risk appetite, roles and escalation
First assessment and treatmentAvailability of system owners and technical leads for workshops
Review, or ISO/IEC 42001 auditA reassessment on change, and the certification body's schedule where certification is added

If a customer questionnaire or board meeting sets the date, tell us at the outset and we will plan backwards from it, with a clear view of what can be evidenced by then.

Your engagement

What your ISO 23894 engagement includes

Your engagement follows Sterling OS™. Design™ and Drive™ are alternative levels of support, and you choose one of them; Sustain™ and Automate™ keep the method running afterwards. Sterling does not certify: ISO/IEC 23894 has no certificate, and where you pursue ISO/IEC 42001 an accredited certification body audits and decides.

  • Design™: guided support

    We provide the framework, criteria, templates and coaching; your team runs the workshops and owns the register.

  • Drive™: managed support

    Our consultants lead the inventory, gap analysis, assessment workshops and treatment planning, with your owners approving decisions.

  • Sustain™: after go-live or certification

    Scheduled reassessments, new AI systems brought into scope and management reporting, so the method stays current.

  • Automate™: Effivity

    The AI risk register, treatment actions and reviews run in Effivity, included with the engagement at no additional cost.

  • Training for your people

    Internal auditor training where ISO/IEC 42001 applies, and preferential Sterling Academy access, including complimentary awareness training for your people as part of the engagement.

Where certification to a related standard is chosen, certification decisions remain with the independent certification body.

How Sterling implements ISO and GRC standards

Effivity · AI risk software, included in every engagement

How Effivity helps you fulfil, automate and simplify the ISO/IEC 23894 risk process.

Every Sterling ISO/IEC 23894 engagement includes Effivity, the ISO and GRC automation platform built by the Sterling group and used in 50+ countries. Your consultant configures the workspace within the agreed scope, so the AI system inventory, risk criteria, risk register, treatment actions, reviews and reports sit in one place and every decision keeps its owner and date. Sterling consulting clients get their Effivity subscription included with the engagement, at no additional cost.

Effivity: Context of the Organisation dashboard with issues, interested parties and scope
Effivity · Context of the Organisation dashboard
Framework

Roles, commitment and integration

Accountable owners for each AI system, the risk policy and the escalation path recorded once and referenced wherever a decision is made.

Scope, context and criteria

AI inventory and risk criteria

Every AI system in scope with its purpose, owner and context, assessed against criteria that management has approved.

Risk assessment

Identification, analysis and evaluation

Risks recorded with source, consequence and likelihood, scored consistently and ranked for decision.

Risk treatment

Treatment options and plans

The chosen option for each risk, its actions, owners and dates, tracked until the treatment is shown to work.

Communication and consultation

Stakeholder input and approvals

Workshop participants, consultations and sign-offs captured against the risks they concern.

Monitoring and review

Reassessment on schedule and on change

Review dates and change triggers raise reassessment tasks automatically when a model, data source or use changes.

Recording and reporting

Dashboards and management reports

Open risks, overdue treatments and trends reported to management and the board from live data.

Across the system

Your own processes, forms and reports

Fields, workflows and templates adapted to your life cycle and terminology, without code.

What this means when someone asks for proof

When a customer, board member or auditor asks how an AI risk was decided, the answer is a record: who identified it, how it was scored, which treatment was approved and when it was last reviewed. If you later certify to ISO/IEC 42001, the same workspace carries the risk assessment and treatment evidence into the audit.

In your engagement

  • Subscription included with the engagement, at no additional cost
  • Configured by your Sterling consultant within the agreed scope
  • Existing risk registers migrated, not retyped
  • Admin and user training for your team
  • Modules for ISMS, QMS and other standards when you integrate

Sterling Academy · AI governance e-learning

Help everyone who touches AI understand the risks they manage.

Sterling Academy provides e-learning for the whole workforce and for the people who own AI systems: video lessons, practice checkpoints, a final exam and a numbered Certificate of Completion that can be verified online. Sterling consulting clients benefit from preferential Sterling Academy course access and special pricing through their Sterling consultant, including complimentary awareness training for their people as part of the engagement.

  • Awareness for every employee who uses AI tools at work
  • Deeper learning for system owners and risk leads
  • Internal auditor training, as applicable to your standard, where ISO/IEC 42001 is in scope
  • Progress reports by department as evidence of competence
  • New joiners trained as they arrive
  • A Sterling consultant available when a learner has a question

Why Sterling

Why choose Sterling for ISO 23894 AI risk management?

AI risk sits between technology, legal, operations and the board. We bring those people to one method, so that decisions on AI are made with the same discipline as any other significant business risk, and so that the method scales from one system to many.

Risk frameworks in 60+ countries since 2003

Management systems and risk methods for organisations in many sectors and regions, with one engagement team across your entities.

All-inclusive proposal

Consulting, Effivity, training and Academy access in one proposal, with any certification-body fees shown separately.

A path to certification when you want one

The same risk method feeds straight into ISO/IEC 42001, so alignment work is never thrown away.

Expert and experienced consultants

Consultants with deep risk management and ISO experience who build a method your AI teams can run without us.

Sterling vs the rest: the full comparisonExplore AI governance client experience

The Sterling Promise

What our ISO/IEC 23894 success guarantee means

100%on-time completion · success · 8,100+ client engagements

We stay with you until the agreed ISO/IEC 23894 outcome is reached: a working AI risk framework, a completed assessment and treatment cycle, and people who can repeat it. Included software and learning mean the capability remains after we step back.

The engagement identifies the standard, scope, outcome and responsibilities. Your organisation supplies accurate information and puts the agreed controls into use. Where certification to a related standard applies, the independent certification body assesses conformity and retains its certification decision. Our commitment concerns the agreed support, not a promise of every future tender award or error-free delivery.

FAQs

Frequently asked questions about ISO 23894

Can you get ISO 23894 certified?

No. ISO/IEC 23894 is guidance, and no accredited certification scheme exists for it. Organisations that want an independent certificate for how they govern AI pursue ISO/IEC 42001 and can use ISO/IEC 23894 as the method behind its risk assessment and treatment.

What is the difference between ISO 23894 and ISO 31000?

ISO 31000 is general risk management guidance for any type of risk; ISO/IEC 23894 applies it to AI. The AI document is meant to be used together with ISO 31000:2018, follows its clause structure and adds AI-specific guidance where needed, including annexes on AI objectives, risk sources and the AI life cycle.

What is the difference between ISO 23894 and ISO 42001?

ISO/IEC 42001 specifies requirements for an AI management system and can be certified; ISO/IEC 23894 gives guidance on managing AI risk and cannot. ISO/IEC 42001 requires an AI risk assessment and treatment, and ISO/IEC 23894 offers a detailed way of carrying them out. The ISO/IEC 42001 hub explains that standard's own risk assessment requirements.

Does ISO 23894 apply if we only use AI tools from suppliers?

Yes. The guidance covers organisations that use AI, not only those that develop it. For bought-in tools the assessment concentrates on how you use them, the data you provide, the decisions they influence and what your contracts and supplier checks cover.

How does ISO 23894 relate to the NIST AI Risk Management Framework?

They address the same problem from different sources, and a published crosswalk maps ISO/IEC 23894 to the NIST AI RMF. Organisations serving both US and international customers often use one register that satisfies both, which we can set up in Effivity.

Keep exploring

More on ISO/IEC 23894 and related standards

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