AML Ethical AI Practices & Data Governance 3

Question 1

A data governance team needs to classify customer transaction records under a tiered sensitivity framework. Which classification level would MOST appropriately apply to full credit card numbers?

Accepted Answer

Restricted

Answer

Full PAN (Primary Account Numbers) fall under the most sensitive 'Restricted' or equivalent tier due to PCI-DSS requirements and high re-identification risk.

Question 2

Which fairness metric requires that the proportion of positive predictions be equal across protected groups, regardless of actual base rates?

Accepted Answer

Demographic parity

Answer

Demographic parity (also called statistical parity) requires the model's positive prediction rate to be equal across all demographic groups.

Question 3

An organization implements a policy requiring all ML models affecting employment decisions to be reviewed by a diverse panel before deployment. This control primarily addresses which risk?

Accepted Answer

Algorithmic bias and discriminatory outcomes

Answer

Diverse review panels are a governance control specifically designed to detect and mitigate embedded biases before a model causes discriminatory employment decisions.

Question 4

Under the NIST AI Risk Management Framework (AI RMF), which core function is responsible for identifying, analyzing, and prioritizing AI risks?

Accepted Answer

MAP

Answer

The MAP function in the NIST AI RMF focuses on categorizing and identifying AI risks in their organizational and societal context.

Question 5

A practitioner uses SHAP (SHapley Additive exPlanations) values to explain a credit scoring model's individual predictions. This falls under which category of explainability?

Accepted Answer

Local post-hoc explainability

Answer

SHAP produces local, post-hoc explanations by attributing each feature's contribution to a specific individual prediction after the model is trained.

(AML) Advanced Machine Learning Certification Practice Test

(AML) Advanced Machine Learning Certification Practice Test

AML Ethical AI Practices & Data Governance 3