An AI risk manager is prioritizing which AI models in a large enterprise portfolio require immediate attention. Which combination of factors should drive the HIGHEST risk rating?
Select an answer to reveal the explanation.
Short Explanation
You should rate the model used for customer-facing credit decisions without ongoing performance monitoring as the highest risk. Credit decisions can cause real financial harm, and missing monitoring means problems could go unnoticed.
Full Explanation
The correct choice is the moderate-complexity model used for customer-facing credit decisions without ongoing performance monitoring. Credit decisions are high-impact because they affect customers and can create financial, regulatory, and reputational harm. Missing monitoring is a key control gap, since drift or degradation could go undetected. The low-stakes internal reporting model is lower risk despite complexity and recent deployment. The fraud-detection rule-based model is lower risk because monthly reviews are compensating controls. The internal HR model is lower risk because it is not customer-facing and has quarterly validation.