DEMO AI SOLUTIONS AB
RISK MANAGEMENT SYSTEM POLICY
Document ID: DEMOAI-POL-RMS-001
Version: 2.0 | Approved by: Maria Lindberg, CTO | Effective: 2026-02-01

=== FICTIONAL DOCUMENT — FOR DEMONSTRATION PURPOSES ONLY ===

1. PURPOSE

This risk management policy document establishes the risk management system
for Demo AI Classifier v2.1, a high-risk AI system used for automated quality
control in manufacturing. The policy is established, implemented, documented
and maintained in relation to the high-risk AI system as required by applicable
regulation.

2. SCOPE

This documented scope of risk assessment covers all phases of the AI system
lifecycle: design, development, validation, deployment, and post-deployment
monitoring. The risk management procedure applies to risks that may affect
health, safety or fundamental rights of persons.

Risks excluded from scope: purely financial risks not affecting persons,
market competition risks, and reputational risks without safety implications.
The rationale for excluded risks is that they fall outside the regulatory
definition of risks to health, safety or fundamental rights.

3. GOVERNANCE

The risk management system is owned by the CTO. The AI Risk Committee meets
quarterly to review risk status. Risk identification is performed by the
development team with input from domain experts in manufacturing quality
control.

4. RISK IDENTIFICATION

Risks are identified through systematic analysis of the known and the
reasonably foreseeable risks that the high-risk AI system is likely to pose
to health, safety or fundamental rights. Risk identification methodology
includes FMEA (Failure Mode and Effects Analysis), expert review sessions,
and analysis of incident reports from similar systems.

5. RISK MANAGEMENT MEASURES

Identified risks shall be managed through design-level risk elimination
measures where technically feasible, followed by mitigation measures and
control measures for residual risks. Traceability from identified risks to
measures is maintained in the risk register.

6. DOCUMENT CONTROL

This policy is reviewed annually and updated when material changes occur to
the AI system or regulatory requirements.