AIF-C01 Question 227
Select 3A data science team at a financial institution is developing a machine learning model for loan approval predictions. According to the governance protocols, the institution requires regular reviews to ensure compliance with internal policies and regulatory standards. Which of the following steps should the team include in their governance process to adhere to these requirements?
- A
Schedule periodic audits to evaluate model performance and fairness.
- B
Document all changes to the dataset, model, and hyperparameters.
- C
Deploy the model without review to accelerate development cycles.
- D
Establish a review board to assess ethical implications of the model.
- E
Ignore external regulatory compliance to focus on internal policies only.
Show answer and explanation
Correct answers: A, B, D
Explanation
Governance protocols require a structured approach to ensure compliance with internal policies, ethical considerations, and external regulations. This includes periodic audits, proper documentation, and the establishment of review mechanisms. These steps ensure traceability, accountability, and adherence to governance frameworks while mitigating risks associated with deployment of AI/ML models.
- A. Correct.
Periodic audits are essential for ensuring the model is performing as expected and adheres to fairness and compliance requirements.
- B. Correct.
Documenting changes ensures traceability and accountability, which are critical components of governance protocols.
- C. Incorrect.
Deploying the model without review contradicts governance best practices and can lead to non-compliance with policies and regulations.
- D. Correct.
A review board focused on ethical implications ensures that the model aligns with organizational values and regulatory expectations.
- E. Incorrect.
Ignoring external regulatory compliance is not acceptable, as adhering to external regulations is a key aspect of governance protocols.