AAIA AI Governance And Risk Practice Test 3 — 15 Questions

Question 1

Which TWO of the following are typical 'Model Risk Management' (MRM) pillars?

Accepted Answer

Independent model validation. MRM is structured around independent validation and continuous monitoring.

Answer

Designing office holiday parties

Answer

Negotiating salaries for the data scientists

Answer

Public relations management

Question 2

Which THREE criteria are necessary for an AI system to be deemed 'Trustworthy' under most governance frameworks?

Accepted Answer

Reliability and consistent performance over time. Trustworthiness is derived from transparency, reliability, and security.

Answer

The ability to generate high revenue for the firm

Answer

The use of the latest marketing buzzwords

Question 3

What is the key difference between 'AI Ethics' and 'AI Compliance'?

Accepted Answer

Ethics focuses on societal values, while compliance focuses on legal and regulatory requirements. Ethics concerns what *should* be done based on values, while compliance concerns what *must* be done based on rules.

Answer

There is no difference between the two

Answer

Ethics is only for AI, while compliance is for all departments

Answer

Compliance is only for technical roles, while ethics is for executives

Question 4

During an audit of AI procurement, you find that the 'Vendor AI Assessment' questionnaire is missing. What is the correct next step?

Accepted Answer

Immediately halt the use of the vendor until a formal risk assessment is completed. An auditor must ensure that third-party AI risks are evaluated using a formal, documented process.

Answer

None of the above

Answer

Update the office building safety guidelines

Answer

Ask the vendor for their marketing presentation

Answer

Ignore the missing document if the vendor is well-known

Question 5

What is the primary function of an 'AI Audit Log'?

Accepted Answer

To track and document all interactions and changes made to the AI system. An audit log records all actions performed by or on the AI system, ensuring accountability and traceability.

Answer

To automatically order pizza for the team

Answer

To store the personal contact information of the IT staff

Answer

To provide entertainment for employees during breaks

Question 6

What is the purpose of an 'AI Policy' within an organization?

Accepted Answer

To provide a structured set of guidelines for the responsible development and use of AI. An AI policy sets the standard for responsible, secure, and compliant AI usage across the enterprise.

Answer

To list the office coffee machine settings

Answer

To define the company's dress code policy

Answer

To describe the history of computer hardware

Question 7

A company's AI governance policy requires 'Model explainability'. Which tool or technique best satisfies this requirement for complex deep learning models?

Accepted Answer

Using SHAP (SHapley Additive exPlanations) to interpret model features. SHAP (SHapley Additive exPlanations) or LIME are industry-standard techniques for explaining deep learning decisions.

Answer

Asking the model's developer to write a summary of their feelings about the model

Answer

Printing the model's architecture as a JPEG file

Answer

Reducing the number of parameters in the model to one

Question 8

You are auditing a firm using LLMs (Large Language Models). Which risk is most specific to generative AI compared to traditional predictive models?

Accepted Answer

Hallucinations and generation of misinformation. Hallucination is a unique risk of generative models where they output plausible but factually incorrect information.

Answer

Database login credentials being shared

Answer

Server power consumption

Answer

Missing documentation for the training code

Question 9

Which 'AI Risk Mitigation' strategy is most effective for reducing 'Data Leakage' in training sets?

Accepted Answer

Implementing strict data partitioning and feature selection protocols. Data leakage occurs when information from the target variable leaks into the training features; strict separation and testing prevent this.

Answer

Using more colorful charts in the report

Answer

Increasing the number of servers

Answer

Changing the office seating arrangement

Question 10

Which action is required when a model is found to be 'Non-compliant' with the internal AI Governance policy?

Accepted Answer

Immediate remediation or removal from the production environment. Non-compliant models must be removed from production or restricted until remediated to prevent risk.

Answer

Writing a blog post about the failure

Answer

Ignoring the finding if the model is profitable

Answer

Giving the model a new name

Question 11

You are auditing a model's 'Robustness' against adversarial attacks. Which test is most appropriate?

Accepted Answer

Performing adversarial perturbation testing. Adversarial testing involves introducing perturbations to inputs to see if the model's output changes unexpectedly.

Answer

Checking if the server is plugged in

Answer

Checking the model's training accuracy

Answer

Asking the team to describe their favorite movies

Question 12

Which TWO of the following are examples of AI governance 'Inputs'?

Accepted Answer

Internal AI Policy and guidelines. Inputs include regulatory requirements and internal policy documents.

Answer

A photograph of the company founder

Answer

The company's social media password

Answer

The office printer manual

Question 13

Which THREE risks should be explicitly managed in an 'AI Governance' program?

Accepted Answer

Operational performance degradation. Governance must manage bias, security, and performance risks.

Answer

The choice of font for the final report

Answer

The color of the server room lights

Question 14

What is the primary objective of 'Board-level AI Governance'?

Accepted Answer

To ensure AI aligns with the organization's business strategy and risk appetite. The board ensures that AI aligns with the firm's strategic risk appetite and legal obligations.

Answer

To decide which programming language is used

Answer

To fix bugs in the model code

Answer

To organize the annual team lunch

Question 15

During an audit of an AI system, you notice that 'Model validation' is performed by the same team that developed the model. Why is this a concern?

Accepted Answer

Lack of independence compromises the integrity of the validation process. Self-validation lacks the independence required to identify errors, bias, or lack of robustness effectively.

Answer

The team might be too friendly with each other

Answer

The validation team might work too slowly

Answer

It is not a concern

Answer

The model will be too accurate