Integrate GRC into AI Projects CY0-001 Practice Questions (Page 5)

Questions 21–25

1. 21application · medium

   A healthcare startup is developing an AI model to predict patient readmission risk. The data science team wants to use a public dataset that includes patient demographics and treatment history. The compliance officer requires that the model not inadvertently discriminate against any protected group. Which action should the project lead take FIRST?

   • AAsk the legal team to draft a terms-of-use agreement for the dataset.
   • BAnonymize the dataset and immediately begin training the model to meet project deadlines.
   • CDeploy the model with a disclaimer that it is for research purposes only and not for clinical use.
   • DConduct a data privacy impact assessment and a bias risk assessment on the dataset before model development.
   Reveal Solution Discussion Select an answer first
2. 22foundation · easy

   Which of the following best describes the primary purpose of a governance, risk, and compliance (GRC) framework in an AI project?

   • ATo replace the need for technical testing by relying on documented policies
   • BTo provide a structured approach for aligning AI initiatives with organizational objectives while managing risks and meeting legal obligations
   • CTo guarantee that all AI models are free from bias and errors
   • DTo focus exclusively on financial risk management for AI investments
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4. 23application · medium

   A multinational corporation is establishing a GRC framework for its AI projects. The framework must align with industry standards and be adaptable to different regional regulations. Which approach best meets this need?

   • ARely on the legal department to interpret regulations on a case-by-case basis.
   • BUse only the EU AI Act as the global standard.
   • CAdopt a recognized framework like NIST AI RMF and map it to local regulations.
   • DDevelop a unique framework from scratch for each region.
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5. 24expert · hard

   A government agency is developing an AI system to automate benefits eligibility decisions. The system must comply with strict data privacy laws and be transparent to citizens. The agency has limited budget and must balance the need for accuracy with the risk of bias. Which approach best addresses these competing requirements?

   • AOutsource the AI development to a vendor that guarantees compliance.
   • BImplement a human-in-the-loop review for all decisions, with a bias audit conducted quarterly.
   • CDeploy the AI system fully automated to maximize efficiency and reduce costs.
   • DUse a simple rule-based system that is fully transparent but may be less accurate.
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6. 25foundation · easy

   Which of the following activities is part of integrating GRC into the AI deployment phase?

   • AConducting a pre-deployment risk review
   • BDeleting all training data after deployment
   • CIgnoring compliance requirements until after launch
   • DDisabling monitoring to reduce costs
   Reveal Solution Discussion Select an answer first