During an AI system audit, an auditor discovers that the organization lacks a formal model inventory. What is the MOST significant risk associated with the absence of a model inventory?
Select an answer to reveal the explanation.
Short Explanation
Here's the deal — without a model inventory, you lose visibility into which models are in production, their risk tier, and validation status, so model risk goes unmanaged. A model inventory is the foundational control for model risk management, and you need it to track status, ownership, validation dates, and performance.
Full Explanation
The loss-of-visibility option is correct because a model inventory is the foundational control for model risk management; without it, organizations cannot systematically track model status, risk tier, ownership, validation dates, or performance, leaving models in production without oversight. This is explicitly required by SR 11-7 and OCC guidance. The inability to calculate total training cost across all deployed models is an operational concern, not a risk. The GDPR data-minimization option does not specifically require a model inventory. The ISO 9001 quality-management documentation option does not specifically require a model inventory.