AI Models, Frameworks, Strategies, and Use Cases AAIR Practice Questions (Page 4)

Questions 16–20

1. 16expert · hard

   A large enterprise is adopting AI across multiple business units. Each unit has different risk appetites and regulatory requirements. The enterprise risk management (ERM) team wants to integrate AI risk governance without stifling innovation. What is the most effective approach?

   • ACentralize all AI risk decisions at the ERM level to ensure compliance
   • BApply a uniform AI risk framework across all business units to ensure consistency
   • CDefer AI risk governance to external consultants to ensure objectivity
   • DAllow each business unit to define its own AI risk governance, with ERM providing oversight and escalation for high-risk cases
   Reveal Solution Discussion Select an answer first
2. 17foundation · easy

   Which statement best describes the role of an AI framework such as TensorFlow or PyTorch?

   • AIt provides a set of tools and libraries to build, train, and deploy machine learning models.
   • BIt defines the business strategy for adopting AI across an organization.
   • CIt is a regulatory standard that mandates how AI models must be audited.
   • DIt is a data storage format used exclusively for training datasets.
   Reveal Solution Discussion Select an answer first
4. 18foundation · easy

   How does AI risk governance typically integrate with an enterprise risk management (ERM) framework?

   • ABy ignoring AI risks until they materialize
   • BBy replacing the ERM framework with AI-specific frameworks only
   • CBy embedding AI risk considerations into existing ERM processes and aligning with established frameworks like COBIT
   • DBy treating AI risks as a separate, isolated process outside the ERM framework
   Reveal Solution Discussion Select an answer first
5. 19foundation · easy

   A bank wants to use AI to approve or decline loan applications based on historical data with known outcomes. Which AI model category is most appropriate for this task?

   • ASupervised machine learning
   • BClassical AI (expert systems)
   • CGenerative AI
   • DUnsupervised learning
   Reveal Solution Discussion Select an answer first
6. 20expert · hard

   A multinational corporation is adopting AI across its subsidiaries. Each subsidiary has its own risk management framework, and the corporate office wants to ensure consistent AI risk governance without imposing a one-size-fits-all approach. What is the most effective strategy?

   • AEstablish a corporate AI risk policy with minimum standards, and let subsidiaries implement local procedures
   • BUse a third-party AI risk assessment service for all subsidiaries
   • CAllow each subsidiary to manage AI risks independently without corporate oversight
   • DMandate a single global AI risk framework and require all subsidiaries to adopt it
   Reveal Solution Discussion Select an answer first