Thresholds

Determination mechanism

An exception routes to the Head of Risk where it removes, defers or weakens a control that the mandatory control catalog marks required for the affected system's consequence class. All other exceptions sit with Enterprise Architecture. The band is defined by the catalog, not by a number, so it moves automatically when the catalog changes.

Determination mechanism

Within band: drift inside the thresholds recorded on the model card at authorization. At or beyond: any drift breaching a recorded threshold, or any drift at all on a system at or above materiality.

Determination mechanism

Each domain owner accepts within the limits stated for that domain in the risk appetite statement. Anything above routes to the AI Governance Board. Limits are expressed in the domain's own units rather than converted to a common scale.

Determination mechanism

Within band: a departure from AI policy that does not weaken a control the mandatory control catalog marks required for the affected system's consequence class. The Head of Risk grants the exception, time-bounded with a named remediation owner. At or above the band: where the departure reaches such a control, the exception routes to the AI Governance Board for board-recorded acceptance with a review date.

Determination mechanism

A pilot is a production system where any one of the following holds: it serves users outside the team that built it; its output influences a decision that is acted upon; it processes production data containing personal or regulated information; it has operated beyond the duration stated in its pilot registration. The fourth trigger makes the others enforceable, because a pilot registered with no end date is a production system that has not been classified.

Determination mechanism

Reallocation of work from people to AI systems requires an aggregate position at Layer 6 where any one of the following holds: it affects a defined role rather than discrete tasks within it; it affects more than a stated proportion of headcount in a function; it removes a step that was the only human review in a process; it triggers a consultation or notification obligation.

Determination mechanism

A system is material where any one of the dimensions below applies. Dimensions are not ranked and any single trigger is sufficient. Legal and regulatory: failure would breach a regulatory obligation or a contractual commitment. Individual position: it influences a decision affecting a person's legal position, access to a service, or the terms on which a service is offered. Safety: failure could cause physical harm, or the system informs a decision bearing on physical safety. Employee: it informs hiring, evaluation, allocation, discipline or termination, or it reallocates work at or above the workforce reallocation threshold. Fairness: its outputs could differ systematically across a protected characteristic, whether or not legal position is affected. Fundamental rights: it bears on a right for which a fundamental rights impact assessment would be required. Privacy: it processes special category data, or personal data at a scale or in a combination the data subject would not expect. Autonomy: it takes action without human confirmation. Financial: annual cost exceeds the CFO's standing operational delegation, or one automated decision can commit value above the agent transaction limit. Operational: failure would interrupt a process the organization cannot perform manually at required volume. Reputational: failure would be externally visible in a way a reasonable executive would escalate.

Default starting point

The CFO decides within the approved annual envelope where the expansion is under 25 percent of currently provisioned capacity for that workload class. Above either bound, escalate.

Default starting point

Expansion serving growth in existing demand is an operating resource and sits with the CFO. Expansion enabling a capability not currently in production is an investment and sits with the Portfolio Board.

Default starting point

Inherit the organization's existing financial delegation limits. Add an AI-specific per-transaction limit at 10 percent of the human delegation for the equivalent role, and a daily aggregate limit at five times the per-transaction limit. High-impact or irreversible actions default to human confirmation regardless of monetary value. Value is a poor proxy for consequence: deleting a records archive, submitting a regulatory filing or terminating an account may carry no transaction value at all.