A digital bank utilizes an AI system to generate credit scores. Which of the following would BEST mitigate the risk of sudden and unexplained changes in a borrower's credit score?

Question

Options

• AEnsuring the system is periodically reviewed and calibrated by human experts to maintain stability
• BUsing only data from the last six months to one year to avoid outdated information affecting the
• CAllowing the AI to operate fully autonomously to prevent processing delays
• DObtaining and validating the credit scores from third-party agencies to cross-check AI-generated

• A
  85% (46)
• B
  9% (5)
• C
  2% (1)
• D
  4% (2)

Explanation

Periodic review and calibration by human experts (A) ensures ongoing human oversight and model stability. Experts can detect model drift, unexplained volatility, or errors before they cause harm to borrowers-directly mitigating the risk of sudden, unexplained score changes. Restricting data to only the last six months (B) could introduce its own instability by discarding longer-term behavioral patterns. Allowing full autonomous operation (C) removes the human checks needed to catch model misbehavior. Validating against third-party scores (D) is a useful cross-check but only identifies problems after the fact; it does not prevent or calibrate the AI system itself, making it less effective than proactive human review and calibration.

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