Free GARP RAI Exam Questions

Become GARP Certified with updated RAI exam questions and correct answers

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Total 330 Questions | Updated On: Jul 13, 2025

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Question 1

An investment firm is setting up its model risk management framework. Who is primarily responsible for approving or rejecting models based on validation results?

A : Model developers

B : Internal auditors

C : Senior management

D : Model validators

Answer: C

Question 2

Which type of risk might an organization face if an AI algorithm breaches individual privacy or yields biased results?

A : Existential risk

B : Operational risk

C : Reputational and regulatory risk

D : Environmental risk

Answer: C

Question 3

Which term best describes a dataset that includes a mix of organized, structured financial data and unstructured text data from customer reviews?

A : Structured data

B : Unstructured data

C : Semi-structured data

D : Binary data

Answer: C

Question 4

You are given the following feature vector and statistical parameters:Feature Vector: [1, 3.6, 9, 10]Mean: 5Variance: 2.89What is the standardized feature vector?

A : [−2.35,−0.82, 2.35, 2.94]

B : [−2.34,−0.81, 1.81, 1.97]

C : [−1.81,−0.81, 2.34, 2.76]

D : [−2.34,−0.81, 2.34, 3.76]

Answer: A

Question 5

A risk manager is evaluating an NLP-based sentiment analysis model that uses dictionary approaches across multiple datasets. He notices inconsistent results when analyzing different document types. What could explain this inconsistency?

A : The dictionary approach is ineffective for NLP applications

B : The dictionary approach requires separate datasets for each document

C : The dictionary's effectiveness is limited by the document type and language style

D : The dictionary approach is too complex for real-world use

Answer: C

Page: 1 / 66

Total 330 Questions | Updated On: Jul 13, 2025

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