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LLM Risk Assessment

You're identifying and managing risks when using large language models—hallucination, privacy, reliability, and latency issues.

This evaluates what can go wrong before anything is built.

Step 1: Hallucination Risk

Ask:

  • Does the task require precise facts?
  • Would a wrong answer cause confusion or harm?
  • Is there a single correct answer?

Low-risk example: Drafting internal brainstorming notes.

High-risk example: Providing policy guidance to customers.

Flag high-risk tasks clearly.

Step 2: Privacy and Data Risk

Determine:

  • Whether personal or confidential data is involved
  • Who is allowed to see the data
  • Whether data leaves internal systems

If sensitive data is involved, require safeguards or exclude AI use.

Step 3: Reliability Risk

Ask:

  • Does this task need consistent output every time?
  • Would variability cause problems?
  • Can humans easily review the output?

Tasks requiring strict consistency carry higher risk.

Step 4: Latency and Availability Risk

Consider:

  • How fast the output is needed
  • Whether delays block other work
  • What happens if the system is unavailable

Time-critical tasks increase risk.

Step 5: Human Oversight Requirement

Decide:

  • No review needed
  • Light review required
  • Mandatory human approval

Human-in-the-loop lowers risk.

Step 6: Assign Risk Level

Label each task as:

  • Low Risk
  • Medium Risk
  • High Risk

Add notes explaining why.

What You Should Have Now

✅ LLM Risk Assessment List

✅ Risk level per task

✅ Required safeguards and oversight notes

Quality Check

  • Risks are clearly explained
  • High-risk tasks are not hidden
  • Safeguards match risk level
  • No task proceeds without review rules
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Next Step: With risks assessed, you're ready to score opportunities by difficulty.

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