Free GARP RAI Exam Questions

A financial services firm is using a neural network with multiple hidden layers to predict the likelihood of loan default (binary classification). They find that the model isn’t learning well with the logistic activation function in the hidden layers. Which activation function should they consider switching to improve learning?

A generative AI provider in China is designing its service to align with Chinese regulations. What is a key obligation it must meet under the Generative AI Measures?

A bank is developing its model risk governance framework to address ML/AI models. What foundational approach should the bank take?

A retail bank uses self-training to classify loan applicants as high or low risk, but it finds that updating the model after each new labeled data point is computationally intensive. Which approach can the bank use to reduce this burden?

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