AI Risk Assessment, Thresholds, and Treatment AAISM Practice Questions (Page 4)

Questions 16–20

1. 16foundation · easy

   If an AI risk is assessed at a level below the organization's established risk threshold, what is the typical decision?

   • AThe risk may be accepted without additional treatment
   • BThe risk must be avoided by discontinuing the AI system
   • CThe risk must be immediately transferred to a third party
   • DThe risk must be mitigated to reduce it further
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2. 17application · medium

   A company implemented a mitigation control for an AI risk: they added a human review step for high-value transactions flagged by the AI. After implementation, the risk team must assess residual risk. What is the best way to do this?

   • AAssume the residual risk is zero because a control was implemented.
   • BUse the original risk rating without any adjustment.
   • CAsk the AI vendor to guarantee the residual risk is acceptable.
   • DRe-evaluate the likelihood and impact of the risk considering the effectiveness of the human review control.
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4. 18foundation · easy

   What is the primary difference between qualitative and quantitative methods for analyzing AI risks?

   • AQualitative methods use descriptive scales (e.g., high, medium, low) while quantitative methods use numerical values (e.g., probability percentages and monetary impact)
   • BQualitative methods are more accurate than quantitative methods
   • CQualitative methods are only used for AI risks, while quantitative methods are used for all other IT risks
   • DQuantitative methods are always faster to perform than qualitative methods
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5. 19foundation · easy

   How are risk thresholds used in the AI risk management process?

   • ATo determine which AI risks require treatment and which are acceptable
   • BTo identify all potential AI risks in the system
   • CTo automatically implement risk treatment measures
   • DTo calculate the exact financial loss from each AI risk
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6. 20expert · hard

   A company is analyzing the risk of an AI system that could cause financial loss due to incorrect predictions. They have data on the frequency of incorrect predictions and the average financial impact per incident. The company's risk threshold is defined in monetary terms. What is the best way to analyze this risk?

   • AUse a qualitative rating of 'high' based on the potential for financial loss.
   • BAnalyze the risk using a scenario analysis of a single worst-case incident.
   • CDefer the analysis until more data is available.
   • DCalculate the annual expected loss by multiplying the frequency of incidents by the average impact per incident.
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