Isaca ISACA Advanced in AI Audit (AAIA) AAIA Question # 52 Topic 6 Discussion
AAIA Exam Topic 6 Question 52 Discussion:
Question #: 52
Topic #: 6
An organization is using a large language model (LLM) to assist in evaluating loan applications, but the training data used is known to be incomplete. Which of the following is the GREATEST associated risk?
Incomplete training dataoften leads to underrepresentation of certain applicant types, products, or scenarios. In credit and lending, this typically translates intosystematic bias: some groups are evaluated on richer historical patterns, while others are evaluated on sparse or unrepresentative information. The greatest associated risk is thereforeunfair loan decisions(A), which can manifest as unjustified rejections, inappropriate pricing, or inconsistent risk assessments.
While delays (B), reduced satisfaction (C), or increased manual work (D) may occur, they are secondary operational issues. AAIA highlights that for financial services, the central risks includefairness, discrimination, regulatory compliance, and reputational impact. Incomplete data directly undermines fairness and can violate lending regulations and internal risk appetite.
[References:, ISACA,AAIA Exam Content Outline– Domain 1: AI Governance and Risk (risk categories, including fairness and discriminatory outcomes)., ISACA AI ethics content on data completeness and representativeness in decisioning systems., ]
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