FD-AI Sample Questions & Answers
Four areas run from innovating the business with artificial intelligence, through working with the data AI systems need, ethical considerations, to machine learning and other techniques used to actually build AI solutions.
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- Question 1Intermediate
Business Innovation · Risk mitigation strategies
When establishing risk mitigation strategies for a new algorithmic trading platform, the Chief Risk Officer insists on distinguishing between those who execute the risk controls and those who ultimately answer for regulatory breaches. In AI risk management, what is the fundamental difference between responsibility and accountability?
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Correct answer: B
In risk management and AI governance, responsibility means actually doing the task (e.g., implementing bias checks), which can be delegated to engineers or third parties. Accountability means being answerable for the ultimate outcome (e.g., answering to regulators if the AI breaks the law). Accountability cannot be delegated; it remains with the decision-makers or the organization.
- Question 2Advanced
Business Innovation · Building a business case
A global logistics firm, 'AeroFreight', is currently relying on a legacy, rules-based routing engine that is increasingly failing to account for real-time weather disruptions, leading to a 15% increase in delayed shipments over the past year.
The Chief Operations Officer proposes replacing the legacy system with a machine learning-based predictive routing AI. However, the initial capital expenditure for the AI implementation is estimated at $2.5 million, with an ongoing operational cost of $400,000 annually. The legacy system costs only $300,000 annually to maintain.
The project sponsor argues that the AI will reduce fuel consumption by 8% and eliminate $1.2 million in late-delivery penalties annually. Furthermore, the sponsor notes that if they do nothing, competitors using AI will capture 10% of AeroFreight's market share within two years.
Within the formal AI business case, which section is specifically designed to document this comparison between the proposed AI investment, the legacy system maintenance, and the consequences of inaction?
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Correct answer: D
The Options Appraisal (or Options Analysis) section of a business case systematically compares the proposed solution against alternatives, including the 'do nothing' or 'business as usual' scenario. It weighs the costs, benefits, and risks of maintaining the legacy system versus investing in the new AI solution, providing the evidence needed to justify the final recommendation.
- Question 3IntermediateSelect 2
Business Innovation · Tools for organisational decision-making
During the planning phase of an AI-driven fraud detection system for a retail bank, the project manager uses the MoSCoW method to prioritize features. Which TWO of the following statements correctly apply the MoSCoW prioritization technique in this context? (Select TWO)
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Correct answers: B, E
In MoSCoW (Must have, Should have, Could have, Won't have this time), 'Must have' features are non-negotiable requirements essential for the project's success and viability. Real-time blocking is a core dependency for a fraud detection system. 'Won't have' explicitly defines out-of-scope items for the current iteration, helping manage scope creep.
In MoSCoW (Must have, Should have, Could have, Won't have this time), 'Must have' features are non-negotiable requirements essential for the project's success and viability. Real-time blocking is a core dependency for a fraud detection system. 'Won't have' explicitly defines out-of-scope items for the current iteration, helping manage scope creep.
- Question 4Beginner
Business Innovation · Risk definition and management in AI
True or False: Risk analysis is the process of implementing physical and technical safeguards, whereas risk mitigation is the process of identifying and evaluating potential threats.
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Correct answer: B
The statement has the definitions reversed. Risk analysis is the process of identifying, evaluating, and understanding potential threats (e.g., using SWOT or PESTLE). Risk mitigation is the subsequent step of applying safeguards, controls, and strategies to reduce or eliminate those identified risks.
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