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| Section | Objectives |
|---|---|
| Topic 1: AI Governance and Strategy | - AI governance frameworks and organizational oversight
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| Topic 2: Regulatory and Compliance Requirements | - Global AI regulatory landscape
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| Topic 3: AI Risk Management | - Risk identification and assessment for AI systems
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| Topic 4: Ethics, Privacy, and Responsible AI | - Ethical AI principles and compliance
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| Topic 5: AI Lifecycle Controls | - Controls across AI development lifecycle
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NEW QUESTION # 37
Which of the following is the BEST approach when using AI-driven security ratings to monitor third-party risk?
Answer: A
Explanation:
Within the ISACA Advanced in AI Risk framework, program management connects risk identification, control selection, treatment, monitoring, resilience, third-party oversight, and reporting to enterprise risk objectives. Third-party security ratings are useful only when they support business and compliance decisions.
Mapping rating metrics to strategic objectives and obligations turns technical measures into meaningful risk information instead of isolated performance or availability indicators. This makes option C, Map risk metrics to strategic objectives and compliance obligations, the strongest answer. The other choices describe narrower technical, operational, performance, or administrative considerations and do not address the primary risk- management objective in the scenario as directly. A risk practitioner should select the response that most effectively reduces the stated exposure while preserving appropriate oversight, traceability, and alignment with organizational risk tolerance and business requirements.
NEW QUESTION # 38
An organization seeks to implement a new AI system that uses customer information to create targeted product recommendations. Which of the following is the MOST important consideration to ensure the system complies with regulatory requirements?
Answer: A
Explanation:
Privacy and data protection regulations worldwide-including GDPR, CCPA, and sector-specific laws- impose strict requirements on the collection, use, and processing of personal information. Customer data used for AI systems must be obtained through lawful means with appropriate consent for the specific processing purpose.
Why A is Correct: According to ISACA AAIR guidance on regulatory compliance, the legal basis for processing personal data is the foundational requirement. An AI system built on data collected without proper consent or legal authorization exposes the organization to regulatory penalties, reputational damage, and forced shutdown of the system. Consent must be specific to the AI use case, not merely generic data collection consent.
Why B is Wrong: Backup and storage protocols address data security and resilience, which are compliance requirements but secondary to the lawfulness of data collection. Securely storing improperly obtained data does not cure the regulatory violation.
Why C is Wrong: Human review of recommendations is a governance safeguard for accuracy and fairness, not a regulatory compliance requirement for data collection. Many regulations do not require human review of recommendation systems.
Why D is Wrong: Supervised learning is a modeling technique that does not address regulatory compliance regarding data sourcing. The training methodology is irrelevant to whether the underlying data was legally obtained.
NEW QUESTION # 39
An organization has identified a moderate AI exposure from potential model inaccuracies that could affect internal reporting. The risk falls within the organization's defined tolerance. Which of the following is the BEST course of action?
Answer: B
Explanation:
Risk treatment decisions must be proportionate to the risk level relative to organizational tolerance. When risk falls within defined tolerance, the appropriate treatment is formal acceptance with ongoing monitoring-not escalation of controls or system suspension that would be disproportionate to the risk level.
Why A is Correct: According to ISACA AAIR risk treatment guidance, when identified risk falls within the organization's tolerance threshold, the appropriate response is documented risk acceptance with continued monitoring against thresholds. This proportionate response preserves operational efficiency while maintaining oversight. Implementing controls beyond what the risk level warrants wastes resources and may introduce unnecessary operational disruption.
Why B is Wrong: Aggressively lowering model temperature changes model output characteristics and requires comprehensive retesting-a significant investment of resources. This disproportionate technical response is not warranted for risk that is already within tolerance.
Why C is Wrong: Allocating additional human review resources increases operational costs to manage a risk that the organization has determined is already acceptable. Additional controls beyond tolerance-appropriate levels represent unnecessary risk over-treatment.
Why D is Wrong: Taking the system offline for retraining is a drastic risk avoidance response appropriate only when risk exceeds tolerance or when an active harm is occurring. For risk within tolerance, system suspension is entirely disproportionate and unnecessary.
NEW QUESTION # 40
AI tools can BEST help to mitigate supply chain risk by:
Answer: A
Explanation:
Supply chain risk management requires anticipating disruptions before they materialize. AI's most powerful supply chain contribution is its ability to analyze vast datasets-including signals from suppliers, logistics networks, geopolitical indicators, and environmental data-to predict disruptions with accuracy and lead time that human analysts cannot achieve.
Why B is Correct: The ISACA AAIR AI capability guidance identifies predictive disruption identification as the most significant supply chain risk mitigation AI provides. By processing diverse data signals and identifying patterns that precede supply chain failures, AI enables proactive risk management-allowing organizations to pre-position inventory, identify alternative suppliers, or adjust production schedules before disruptions affect operations.
Why A is Wrong: Automating inventory management is an operational efficiency application. While valuable, it manages existing stock levels rather than predicting and preventing supply disruptions.
Automation cannot anticipate future risks not embedded in current inventory patterns.
Why C is Wrong: Historical security control gap identification is a security audit function. Identifying past security weaknesses does not directly mitigate supply chain disruption risks, which may arise from entirely different categories of risk.
Why D is Wrong: Sentiment analysis on supplier reputation provides one qualitative input to supplier risk assessment. While useful for monitoring reputational signals, it captures only a narrow dimension of supply chain risk compared to comprehensive predictive disruption modeling.
NEW QUESTION # 41
Which of the following BEST enables an organization to comply with regulations on the use of biometric data by its AI models?
Answer: C
Explanation:
Within the ISACA Advanced in AI Risk framework, governance decisions should align AI use with policy, accountability, stakeholder expectations, risk appetite, and applicable legal or ethical obligations. Biometric compliance requires governance over purpose, consent, access, retention, and authorized use. Liveness detection and vulnerability scanning improve security, but purpose-based governance is what prevents sensitive biometric data from being repurposed beyond approved uses. This makes option D, Implementing strong governance to ensure biometric data is used only for its intended purposes, the strongest answer. The other choices describe narrower technical, operational, performance, or administrative considerations and do not address the primary risk-management objective in the scenario as directly. A risk practitioner should select the response that most effectively reduces the stated exposure while preserving appropriate oversight, traceability, and alignment with organizational risk tolerance and business requirements.
NEW QUESTION # 42
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