A model risk officer reviews a vendor's documentation for a purchased AI model and finds no information about the training data's demographic composition. What risk management action is MOST appropriate?
Select an answer to reveal the explanation.
Short Explanation and Infographic
Here's the deal — b is correct because unknown training data demographics is a significant model risk gap — the appropriate response is to request this information from the vendor and, if unavailable, conduct independent bias testing across demographic subgroups before deploying in decisions affecting individuals. A ignores a material risk gap.
Full explanation below image
Full Explanation
B is correct because unknown training data demographics is a significant model risk gap — the appropriate response is to request this information from the vendor and, if unavailable, conduct independent bias testing across demographic subgroups before deploying in decisions affecting individuals. A ignores a material risk gap. C may be appropriate as a contractual condition but is not the immediate action. D is operationally unworkable as demographic composition is unknown.