AI Risk Assessment, Thresholds, and Treatment AAISM Practice Questions (Page 2)

Questions 6–10

1. 6expert · hard

   A multinational corporation is deploying AI in different regions. The risk appetite for AI varies: the European region has a very low risk appetite due to strict regulations, while the Asian region is more tolerant. The company wants a consistent risk management framework. What is the best approach to define risk thresholds?

   • ALet each region define its own thresholds independently without global coordination.
   • BSet a global minimum threshold that satisfies the most stringent regional requirements, and allow regions to adopt stricter thresholds if needed.
   • CUse the most lenient threshold to encourage AI innovation globally.
   • DSet a single global threshold based on the average risk appetite across regions.
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2. 7foundation · easy

   Which of the following is an example of using stakeholder input to identify AI risks?

   • AConducting a workshop with data scientists, legal, and business teams to brainstorm potential failure modes of an AI system
   • BPerforming a quantitative analysis of the financial impact of a potential data breach
   • CRunning an automated scan to detect known vulnerabilities in the AI model's dependencies
   • DReviewing system logs to identify unusual patterns of behavior
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4. 8foundation · easy

   Which risk treatment option is being used when an organization purchases cyber insurance to cover potential losses from an AI system failure?

   • AMitigation
   • BAvoidance
   • CTransfer
   • DAcceptance
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5. 9foundation · easy

   What is the primary purpose of a risk treatment plan?

   • ATo outline specific actions, responsibilities, and timelines for addressing prioritized risks
   • BTo document the results of the risk assessment process
   • CTo list all potential risks without prioritizing them
   • DTo assign a risk owner for every risk in the organization
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6. 10expert · hard

   A company has an AI system that recommends investment strategies. The risk assessment identified a risk of the AI making overly aggressive investments that could lead to significant losses. The risk is rated as 'high likelihood, high impact.' The company's risk threshold for investment AI is 'medium.' What is the appropriate action?

   • ATreat the risk by implementing risk limits and human oversight on investment decisions.
   • BAccept the risk because the AI is expected to generate high returns.
   • CReclassify the risk as 'medium' to align with the threshold.
   • DTransfer the risk by purchasing financial derivatives to hedge against losses.
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