Question 1
Q1A multinational financial institution is establishing its AI Governance Framework. The Chief AI Security Officer (CAISO) is defining the responsibilities of the AI Steering Committee. According to ISACA best practices and the COBIT for AI rationale, which of the following is the PRIMARY responsibility of this committee regarding AI risk appetite?
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Correct answer: B
The AI Steering Committee acts as a bridge between the Board of Directors and operational management. Its primary role regarding risk is to translate the high-level enterprise risk appetite set by the Board into actionable AI-specific risk tolerance levels that guide project approval and control implementation.