Task Statement 5.2: Recognize Governance and Compliance Regulations for AI Systems. AIF-C01 Practice Questions (Page 2)

Questions 6–10

1. 6application · medium

   A manufacturing company uses AI to predict equipment failures. The company wants to implement a risk management process that aligns with the OECD AI principles. Which practice should the company adopt?

   • AConduct regular risk assessments and update the AI system based on findings.
   • BPerform a single risk assessment at the beginning of the project and then proceed without further reviews.
   • CFocus only on technical risks, such as model accuracy, and ignore operational risks.
   • DDelegate all risk management to the IT department without involving other stakeholders.
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2. 7expert · medium

   A global e-commerce company uses AI to recommend products to customers. The company must comply with GDPR in the EU and the California Consumer Privacy Act (CCPA) in the US. Both regulations grant users rights over their data, but they differ in scope and implementation. Which compliance approach best satisfies both regulations?

   • ATreat all users as California residents and apply CCPA only, since it is simpler.
   • BIgnore user requests that are not explicitly required by both regulations to reduce operational burden.
   • CComply only with GDPR because it is more comprehensive and covers more rights.
   • DImplement a unified data subject rights process that handles requests under both GDPR and CCPA, applying the stricter requirements where they overlap.
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4. 8foundation · easy

   An organization wants to adopt a widely recognized AI governance framework to guide its responsible AI practices. Which of the following is an example of such a framework?

   • APCI DSS
   • BSOC 2
   • CNIST AI Risk Management Framework
   • DISO 27001
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5. 9application · medium

   A healthcare AI system uses patient records to predict disease outbreaks. The data includes sensitive personal health information. The organization must ensure data quality and compliance with health data regulations. Which data governance practice is most critical?

   • AImplement strict access controls and data encryption to protect patient data at rest and in transit.
   • BUse only aggregated data that cannot be traced back to individuals, even if it reduces model accuracy.
   • CStore all patient data in a single database to simplify management and reduce costs.
   • DAllow researchers to use any patient data without restrictions to maximize the model's predictive power.
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6. 10foundation · easy

   Which of the following is a common component of AI governance frameworks such as those published by NIST, OECD, or ISO?

   • AA mandate to use a specific cloud provider for AI workloads
   • BA set of principles and processes for managing AI risks and ensuring accountability
   • CA requirement that all AI models be deployed on-premises
   • DA certification that guarantees an AI system is free from bias
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