Free GARP RAI Exam Questions

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?

A financial institution is implementing an AI model that uses proxies for loan approval decisions. Which of the following is a potential risk associated with using proxies?

A social media platform’s content recommendation algorithm repeatedly suggests similar content to users based on previous interactions, creating a feedback loop that reinforces certain perspectives. What type of algorithmic bias does this illustrate?

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

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