AAIA: Advanced in AI Audit

By Isaca · Question Mode

QuestionQ30

AI Governance and Risk

An organization intends to deploy an AI model for real-time fraud detection in financial transactions. Which option is the BEST approach for managing risk associated with false negatives?

Explanation

False negatives allow fraudulent transactions to pass as legitimate. Clear business requirements for an acceptable false-negative rate establish the organization’s risk tolerance and provide a measurable threshold for validating, monitoring, and governing the model’s performance.

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