Safety & GovernanceJanuary 2, 202636 min read
Mathematical Criteria for RiskTier Design: Impact, Irreversibility, and Regulatory Pressure
A principled scoring function T(d) = f(impact, irreversibility, regulation) with rational threshold derivation and domain calibration
Risk tiers in AI governance are often assigned heuristically. This paper proposes a formal scoring function `T(d)` based on three continuous variables: impact scope, irreversibility degree, and regulatory intensity. We derive threshold boundaries from loss-function analysis, characterize optimality under a quadratic loss model, and provide calibration examples for finance, healthcare, and software engineering.
risk-tiersscoring-functionsthreshold-designregulatory-compliancedecision-classificationloss-functions