Artificial intelligence (AI) may be transforming how we work, innovate, and make decisions, but without robust governance, risk, and compliance (GRC) frameworks, that transformation could come at a steep cost. From bias and transparency to data privacy and ethical use, AI brings risks that can’t be managed by legacy frameworks alone.
Enter ISO/IEC 42001:2023 — the first international standard for an Artificial Intelligence Management System (AIMS).
Let’s explore how ISO 42001 enhances third-party risk management programs and provides actionable insights for compliance leaders seeking to stay ahead of rapidly evolving AI governance standards.
Disclaimer: This content is for educational purposes only. Always consult your internal audit or legal teams for guidance tailored to your organization.
What Is ISO/IEC 42001?
Published by the International Organization for Standardization (ISO) and the International Electrotechnical Commission (IEC), ISO/IEC 42001:2023 outlines the requirements for establishing, implementing, maintaining, and continuously improving an AI Management System. The standard covers:
- Ethical AI development and use
- Data quality and transparency
- Risk and impact assessments
- Organizational accountability
- Third-party oversight
It follows the Plan-Do-Check-Act (PDCA) structure and aligns with other ISO standards such as ISO 27001 (information security), ISO 27701 (privacy), and ISO 23894 (AI risk management). While voluntary, ISO 42001 provides a compliance-ready foundation that aligns with mandatory laws like the EU AI Act, and frameworks like NIST AI RMF – and it’s becoming a global benchmark for AI governance.
Why ISO 42001 Matters to Risk and Compliance Teams
AI risk is no longer theoretical. Organizations face real-world consequences — ranging from reputational damage to regulatory penalties — when AI systems fail to meet ethical or operational expectations. ISO 42001 enables teams to:
- Embed AI ethics and risk management into core business processes
- Meet the requirements of frameworks like the EU AI Act, NIST AI RMF, and DORA
- Proactively identify, assess, and mitigate AI risks across the full lifecycle
- Demonstrate trust and accountability to regulators, customers, and stakeholders
- Extending Third-Party Risk Management with ISO 42001
ISO 42001 broadens the scope of third-party risk management by introducing specific controls for AI systems managed by vendors, suppliers, and partners. TPRM teams are now responsible not only for data security and contractual compliance, but also for risks associated with fairness, explainability, model updates, and ethical use.
Key Requirements for TPRM Under ISO 42001
To align with the standard, your TPRM program should:
- Evaluate a supplier’s AI governance practices during onboarding
- Monitor changes to third-party AI models and usage
- Require evidence of transparency, explainability, and ethical controls
- Include contractual provisions addressing incident response and data handling
- Assess fourth-party (subcontractor) AI use and related risks
ISO 42001 for TPRM
Get the Artificial Intelligence Management Systems (AIMS) Compliance Checklist
Acceder ahoraBest Practices for ISO 42001-Aligned TPRM
To effectively govern AI in your supply chain, consider the following steps:
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Define Your Scope
Distinguish internal AI use (e.g., ChatGPT) from AI embedded in customer-facing tools
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Use Statements of Applicability (SOAs)
Clearly document in-scope systems and applied controls
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Apply Consistent Risk Criteria
Use standardized assessments across all vendors using AI
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Evaluate Fairness and Transparency
Ensure third-party models are explainable and free of bias
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Assess Data Governance
Examine data quality, privacy, and lineage for all vendor AI systems
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Continuously Monitor Vendor AI
Incorporate tools for ongoing evaluations and model updates
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Update Intake Forms
Include AI-specific questions around model type, sensitivity, and use case
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Establish an AI Supplier Code of Conduct
Align with ISO 42001 Annex A principles
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Request ISO 42001 Certification
Require key AI vendors to provide certificates or SOAs
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Include Incident Response Clauses
Address AI failure scenarios in breach notification SLAs
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Refresh Supplier Tiering Models Quarterly
Reflect changes in AI adoption and exposure
Looking Ahead: Operationalizing ISO 42001
Adopting ISO 42001 is no longer optional for organizations leveraging AI. The standard sets expectations for responsible AI governance, encompassing everything from ethical principles and human oversight to third-party monitoring and model performance evaluation.
Organizations that act now will gain a competitive edge — earning trust, accelerating compliance, and strengthening resilience. As regulatory bodies across the globe move toward harmonization, including the alignment of ISO 42001 with frameworks such as the EU AI Act, DORA, and NIST AI RMF, adopting the standard now positions organizations ahead of upcoming mandates and strengthens resilience across their third-party ecosystem.
Start Now:
Integrate ISO 42001 into your TPRM strategy and close compliance gaps before regulators mandate action.
Ponte en contactoMitratech: Your Partner in Responsible AI Governance
Mitratech’s Third-Party Risk Management platform helps organizations operationalize AI governance with confidence. From supplier onboarding to continuous monitoring and audit readiness, we empower you to meet evolving standards and safeguard your extended enterprise.
Ready to take control of AI risk in your supply chain? Request a demo of our TPRM solution today.
