AAIR AI Risk Program Management Practice Test 3 — 15 Questions

Question 1

Which action should be taken if a model's performance consistently falls outside the 'Risk Appetite' threshold?

Accepted Answer

Take the model offline for remediation. Once a threshold is breached, the model should be taken offline or placed under remediation until it is back within acceptable risk parameters.

Answer

Only inform the IT team

Answer

Ignore the result as it is just a statistical outlier

Answer

Increase the threshold to match current performance

Question 2

Which of the following is a classic example of 'AI Hallucination' that needs monitoring?

Accepted Answer

The system generates confident but factually incorrect information. Hallucinations are incorrect or nonsensical outputs that can pose reputational risks to an organization.

Answer

The system is running slowly

Answer

The system requires too much electricity

Answer

The system password has expired

Question 3

In a retail company, which AI risk is most likely to cause direct financial loss?

Accepted Answer

The pricing model provides incorrect, discounted rates. Inaccurate pricing models can lead to immediate and direct revenue loss, which is a clear financial risk.

Answer

The model documentation is outdated

Answer

The font size in the UI is too small

Answer

The model's name is not catchy

Question 4

When an AI model fails in production, what is the 'Post-Mortem' goal?

Accepted Answer

To identify root causes and update risk management practices. The goal is to identify the root cause so that the AI risk framework can be updated to prevent recurrence.

Answer

To hide the failure from management

Answer

To fire the developer responsible

Answer

To delete all logs associated with the model

Question 5

Which team is usually responsible for the 'Technical Implementation' of risk controls in an AI model?

Accepted Answer

Data Science/Machine Learning Team. Data Science and Machine Learning Engineers are responsible for embedding the risk controls (e.g., constraints, filters) into the models themselves.

Answer

Internal Audit

Answer

Human Resources

Answer

Legal Department

Question 6

Which metric is useful for measuring the 'Efficiency' of an AI risk program?

Accepted Answer

Time to complete a risk assessment for new models. The time required to complete a risk assessment for a new model tracks how streamlined the governance process is.

Answer

Number of emails sent

Answer

Total weight of the hardware

Answer

Number of meetings held

Question 7

When drafting a vendor management policy for AI, what is the most important clause to include?

Accepted Answer

Right-to-audit the vendor's AI training practices. Right-to-audit clauses ensure that the organization can verify the vendor's AI risk controls, which is essential for third-party risk management.

Answer

Requirement for vendor to provide coffee

Answer

Requirement to use a specific font

Answer

Vendor must provide free hardware

Question 8

If an AI model relies on an open-source library that is found to have a security vulnerability, who is responsible for managing this risk?

Accepted Answer

The AI Risk Manager and Security team. The AI Risk Manager, working with the security team, must assess the risk and ensure the library is updated or the dependency is mitigated.

Answer

The government regulators

Answer

The library's author

Answer

The public at large

Question 9

Which stage of the AI lifecycle should risk management activities begin?

Accepted Answer

During the design and requirements phase. Risk management must be integrated at the beginning (Design/Requirement) to avoid costly redesigns later.

Answer

When the budget is exhausted

Answer

After the model is fully deployed

Answer

Only when a bug is reported

Question 10

Which THREE components are necessary for effective cross-functional AI risk coordination?

Accepted Answer

Clearly defined RACI matrix for AI initiatives. Coordination requires clear communication, defined roles, and a shared vocabulary.

Answer

Weekly team lunches

Answer

Unrestricted access to all production servers for all staff

Question 11

Which TWO factors should be included in an AI risk appetite statement?

Accepted Answer

Financial thresholds for model-related incidents. Risk appetite must be specific to the impact and the tolerance levels for failure.

Answer

The intended impact on company revenue

Answer

The specific programming language allowed

Answer

The preferred office software

Question 12

Which TWO tasks are part of the 'AI Risk Assessment' process?

Accepted Answer

Evaluating the likelihood and impact of identified risks. Risk assessment involves identifying risks and then evaluating them based on impact/likelihood.

Answer

Choosing the font color for the dashboard

Answer

Writing marketing copy for the AI product

Answer

Hiring new office staff

Question 13

Why is it critical to have 'Human-in-the-Loop' (HITL) for high-risk AI decisions?

Accepted Answer

To provide accountability and a safeguard against errors. HITL ensures that a person reviews critical decisions, providing an essential safeguard against machine errors.

Answer

To make the computer faster

Answer

To replace the need for model testing

Answer

To save money on hardware

Question 14

Which TWO items are considered 'AI Model Artifacts' that should be kept for audit purposes?

Accepted Answer

The training dataset version. Documentation and training parameters are crucial for reproducing and auditing model behavior.

Answer

The lunch menu for the developers

Answer

The name of the company's favorite mascot

Answer

The local weather report from last week