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AI Governance and EthicshardMultiple ChoiceObjective-mapped

AI0-001 AI Governance and Ethics Practice Question

A financial institution wants to deploy an AI system that automates loan approvals. Under the EU AI Act, this system would be classified as high-risk. Which of the following is a MANDATORY requirement for high-risk AI systems before market placement?

Answer choices

Why each option matters

Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.

Correct answer & explanation

Establishing a risk management system throughout the system lifecycle

The EU AI Act requires a conformity assessment (often including third-party involvement) for high-risk AI systems to ensure compliance with requirements such as data governance, transparency, and human oversight. The other options are either voluntary, not required, or apply to lower-risk tiers.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Obtaining a CE marking of conformity through self-assessment only

    Why it's wrong here

    High-risk systems typically require third-party conformity assessment unless a harmonised standard covers all aspects.

  • Establishing a risk management system throughout the system lifecycle

    Why this is correct

    A continuous risk management system is a mandatory requirement for high-risk AI systems under the EU AI Act.

  • Acquiring liability insurance for AI-related harms

    Why it's wrong here

    Insurance is not a mandatory requirement of the EU AI Act.

  • Publishing the training dataset in an open repository

    Why it's wrong here

    The Act does not require public release of training data; data governance is required but confidentiality may be maintained.

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