ISO 20775:2009 Information and documentation -- Schema for holdings information Quiz 03 24Mar25 - Practice Quiz

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CrediCorp, a multinational financial institution, is preparing to deploy an AI-powered loan approval system across its global operations. The system is designed to automate the loan application review process, aiming to increase efficiency and reduce processing times. Initial testing reveals that the AI model, trained on historical loan data, exhibits a tendency to approve loans for applicants from certain demographic groups at a higher rate than others, potentially perpetuating existing biases in lending practices. Senior management at CrediCorp is aware of the ISO 42001 standard and its emphasis on ethical considerations and risk management in AI systems. Considering the principles of AI management outlined in ISO 42001, what is the MOST appropriate initial step CrediCorp should take to address this issue before fully deploying the AI-powered loan approval system?

Conduct a comprehensive bias audit of the AI model and implement mitigation strategies to address any identified biases before full deployment.

Limit the scope of the AI system's deployment to specific geographic regions with less diverse populations to minimize potential bias-related issues.

Ensure the AI system complies with all relevant legal and regulatory requirements related to fair lending practices, and proceed with full deployment.

Deploy the AI system across all operations and implement post-deployment monitoring to identify and address any instances of biased loan approvals.

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