IAPP Updated AIGP Exam Questions and Answers by alys

The most comprehensive way to identify a full range of risks — legal, ethical, operational, and societal — for a new AI model is through aformal impact assessment, such as aData Protection Impact Assessment (DPIA)orAlgorithmic Impact Assessment.

From theAI Governance in Practice Report 2025:

“Risk-based approaches are often distilled into organizational risk management efforts, which put impact assessments at the heart of deciding whether harm can be reduced.” (p. 29)

“DPIAs… help organizations identify, analyze and minimize data-related risks and demonstrate accountability.” (p. 30)

A. Environmental scanis too general.

B. Red teamingis useful for adversarial risk but not broad.

C. Integration testingfocuses on technical/system compatibility, not overall risk.

Retraining the model with data that reflects demographic parity is the best strategy to mitigate the bias uncovered in the loan applications. This approach addresses the root cause of the bias by ensuring that the training data is representative and balanced, leading to more equitable decision-making by the AI model.

The correct answer is D because typical AI impact assessments focus on evaluating risks to individuals and society, particularly in areas such as fundamental rights, data protection, and safety. Frameworks like Data Protection Impact Assessments and Fundamental Rights Impact Assessments are designed to assess how AI systems may affect privacy, fairness, human rights, and potential harm to users. These assessments are core components of AI governance and are often required or recommended by regulations such as the GDPR and the EU AI Act. While options A, B, and C reference technical or operational considerations, they do not capture the broader societal and legal impacts that impact assess ments are intended to address. AI governance emphasizes a human-centric approach, ensuring systems are safe, lawful, and respectful of individual rights before deployment.

The correct answer isA. While location of processors may have implications (such as for data transfers under GDPR), there is no absolute requirement that third-party processors be based in the same country.

From the AI Governance in Practice Report 2025 and ILT Guide:

“Data controllers are responsible for ensuring that third-party processors have adequate protections, but not necessarily that they reside in the same jurisdiction. What is required is legal safeguards (e.g., SCCs) for international transfers, not same-country location.”

In contrast, DPIAs, DSARs, and implementation of technical/organizational safeguards are explicitly required under GDPR and responsible AI frameworks.

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