Free GARP RAI Exam Questions

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 Board of Directors at a global tech firm is considering developing a data-collection AI that could enhance user experience but involves intrusive tracking. According to rule consequentialism, how should they decide?

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

An insurance company is using a neural network for classifying claims as "Fraudulent" or "Non-Fraudulent." They decide to use ReLU (Rectified Linear Unit) as the activation function for the hidden layers. What is the primary purpose of using an activation function like ReLU in this neural network?

During training, an RNN model used for forecasting exhibits extremely high gradients at certain steps, causing instability in learning. Which of the following best describes this problem?