An insurance firm has deployed a machine learning model to predict claim fraud. The risk team needs to establish ongoing monitoring and reporting. Which approach best meets this requirement?

Conduct a one-time validation of the model before deployment and document the results in a project report.

Rely on the model vendor to monitor performance and notify the company only if issues arise.

Have the IT helpdesk review model outputs quarterly and email the results to the data science team.

Set up automated dashboards that track model performance metrics (e.g., precision, recall) and generate monthly risk reports for the AI governance committee.

Which of the following is an example of integrating AI risk management with enterprise risk management (ERM)?

Using a different risk assessment methodology for AI risks

Creating a separate risk register exclusively for AI risks

Including AI risks in the organization's risk register

Delegating AI risk management to an external vendor

A telecom company uses AI for network anomaly detection. The risk team is assessing the risk of the AI system failing to detect a major outage. They have limited historical data on outages. Which assessment approach is most appropriate given the data limitation?

Use expert judgment to estimate likelihood and impact, and supplement with scenario analysis based on similar industry incidents.

Rely on the vendor's claim that the system has a 99.9% detection rate, and rate the risk as low.

Use a simple average of past outages, even though data is sparse, to calculate a quantitative risk score.

Defer the risk assessment until more data is collected over the next two years.

In an AI risk governance framework, who is typically responsible for the overall accountability for AI risk management?

The board of directors and senior management

ISACAAdvanced in AI Audit

Domain 1Objective 3

AI Risk Management AAIA Practice Questions (Page 5)

Part of the AI Governance and Risk domain, which accounts for 33% of the AAIA exam.

32questions here

7free pages

6concepts

33%of the exam

Questions 21–25

21application · medium
An insurance firm has deployed a machine learning model to predict claim fraud. The risk team needs to establish ongoing monitoring and reporting. Which approach best meets this requirement?
Select an answer first
22foundation · easy
Which of the following is an example of integrating AI risk management with enterprise risk management (ERM)?
Select an answer first
23expert · hard
A telecom company uses AI for network anomaly detection. The risk team is assessing the risk of the AI system failing to detect a major outage. They have limited historical data on outages. Which assessment approach is most appropriate given the data limitation?
Select an answer first
24application · easy
A company uses an AI recruitment tool that has been found to inadvertently filter out candidates from certain demographics. The risk assessment indicates a high likelihood of regulatory action and significant reputational damage. The company decides to discontinue the tool and use manual screening instead. This is an example of which risk response strategy?
Select an answer first
25foundation · easy
In an AI risk governance framework, who is typically responsible for the overall accountability for AI risk management?
Select an answer first

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