AI Governance and Frameworks CRAGE Practice Questions (Page 8)

Questions 36–40

1. 36application · medium

   A consulting firm advises clients on AI governance. A client in the financial sector wants to adopt a framework that is internationally recognized and provides a structured approach to managing AI risks. The client also wants to demonstrate compliance to regulators. Which framework should the firm recommend?

   • AEU AI Act
   • BOECD AI Principles
   • CISO/IEC 42001
   • DNIST AI RMF
   Reveal Solution Discussion Select an answer first
2. 37application · medium

   An insurance company is deploying an AI system to determine premium rates. The system is a black-box model, and customers are not informed when AI is used. Regulators require that the company ensure accountability and transparency. Which action best aligns with AI governance principles?

   • AOnly disclose AI use if customers explicitly ask
   • BAllow the AI system to operate without human oversight
   • CProvide customers with clear explanations of how AI affects their premiums
   • DKeep the model details confidential to protect intellectual property
   Reveal Solution Discussion Select an answer first
4. 38foundation · easy

   Which of the following is a key element of a successful AI governance implementation strategy?

   • AImplementing all governance changes at once without a phased approach
   • BProviding training to employees on AI governance policies and practices
   • CFocusing only on technical controls and ignoring organizational culture
   • DKeeping governance policies confidential to avoid resistance
   Reveal Solution Discussion Select an answer first
5. 39foundation · easy

   A multinational organization wants to adopt a voluntary AI risk management framework that provides a structured process for identifying, assessing, and mitigating AI risks. Which framework is specifically designed for this purpose?

   • ANIST AI RMF
   • BEU AI Act
   • CGDPR
   • DOECD AI Principles
   Reveal Solution Discussion Select an answer first
6. 40application · medium

   A retail company is developing an AI-based dynamic pricing system. The legal team warns that the system could inadvertently discriminate against certain customer groups. The company wants to develop an AI governance policy that aligns with both its business objectives and regulatory requirements. Which approach should the company take?

   • AProhibit all AI-based pricing to avoid any risk of discrimination
   • BAdopt the OECD AI Principles as the company's internal policy without customization
   • CImplement a policy requiring fairness impact assessments and regular audits for the pricing system
   • DRely solely on the legal team to review the system after deployment
   Reveal Solution Discussion Select an answer first