An organization is deploying an AI system in the European Union that will be used to evaluate creditworthiness of consumers. Which regulatory framework is most directly applicable to this AI system's risk classification?

Health Insurance Portability and Accountability Act (HIPAA)

Payment Card Industry Data Security Standard (PCI DSS)

NIST AI Risk Management Framework

A financial institution uses an AI system to detect fraudulent transactions. The system is considered high-risk under the EU AI Act. The institution's board is reviewing the governance structure. Which governance element is most critical for ensuring accountability?

Deploying the AI system with a fully automated decision-making process

Conducting regular external audits of the AI system's performance

Defining clear roles and responsibilities for AI system oversight, including a named accountable executive

Implementing a comprehensive logging system to record all AI decisions

A multinational bank deploys an AI system to screen loan applications. The system processes personal data of EU residents and is also used in the UK and US. The bank's compliance team is mapping applicable regulations. Which combination of regulations is most directly applicable to the AI system's deployment?

GDPR and US state privacy laws only

An insurance company uses an AI system to set premiums for auto insurance. The system uses personal data, including driving history and credit scores. The company is based in the EU. Which compliance obligation is most directly triggered by the AI system's use of personal data?

Conducting a Data Protection Impact Assessment (DPIA) because the system involves profiling

Anonymizing all personal data before using it in the AI system

Registering the AI system with the EU AI Act database

Obtaining explicit consent from all policyholders for the use of their data

Which governance structure best ensures human oversight of AI decisions?

Relying on the AI system to self-monitor and report issues

Assigning a designated human reviewer to approve or override AI decisions in critical cases

Using only automated decision-making with no review process

Allowing the AI system to make all decisions without human involvement

ISACAAdvanced in AI Risk

Domain 1Objective 5

AI Regulatory Compliance and Legal Considerations AAIR Practice Questions (Page 1)

Part of the AI Risk Governance and Framework Integration domain, which accounts for 37% of the AAIR exam.

34questions here

7free pages

8concepts

37%of the exam

Questions 1–5

1foundation · easy
An organization is deploying an AI system in the European Union that will be used to evaluate creditworthiness of consumers. Which regulatory framework is most directly applicable to this AI system's risk classification?
Select an answer first
2expert · hard
A financial institution uses an AI system to detect fraudulent transactions. The system is considered high-risk under the EU AI Act. The institution's board is reviewing the governance structure. Which governance element is most critical for ensuring accountability?
Select an answer first
3application · medium
A multinational bank deploys an AI system to screen loan applications. The system processes personal data of EU residents and is also used in the UK and US. The bank's compliance team is mapping applicable regulations. Which combination of regulations is most directly applicable to the AI system's deployment?
Select an answer first
4application · medium
An insurance company uses an AI system to set premiums for auto insurance. The system uses personal data, including driving history and credit scores. The company is based in the EU. Which compliance obligation is most directly triggered by the AI system's use of personal data?
Select an answer first
5foundation · easy
Which governance structure best ensures human oversight of AI decisions?
Select an answer first

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