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PECB ISO-IEC-42001-Lead-Auditor Exam - Topic 1 Question 15 Discussion

A financial institution uses an AI system to approve loan applications. Recently, there have been complaints that the system disproportionately denies loans to applicants from certain minority groups. Which core element should the institution prioritize to address these complaints?
A) Fairness and Non-Discrimination
B) Transparency and Explainability
C) Accountability
D) Privacy and Security

PECB ISO-IEC-42001-Lead-Auditor Exam - Topic 1 Question 15 Discussion

Actual exam question for PECB's ISO-IEC-42001-Lead-Auditor exam
Question #: 15
Topic #: 1
[All ISO-IEC-42001-Lead-Auditor Questions]

A financial institution uses an AI system to approve loan applications. Recently, there have been complaints that the system disproportionately denies loans to applicants from certain minority groups. Which core element should the institution prioritize to address these complaints?

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Suggested Answer: A

The most relevant core principle here is Fairness and Non-Discrimination. This principle aims to ensure that AI systems do not create or perpetuate bias, especially in high-stakes decision-making areas such as financial services.

According to ISO/IEC 42001:2023 -- Clause 6.1.2 and Annex A (A.8.2.4), organizations must evaluate and manage risks related to bias, discrimination, and ethical implications of AI decisions.

In the PECB Lead Auditor Guide, Fairness is cited as critical in sectors like finance, hiring, healthcare, and where decisions may adversely impact protected groups.


PECB Lead Auditor Guide -- Domain 1: ''Core Principles of Trustworthy AI''

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by Stephaine at May 17, 2026, 09:11 AM

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Ruth
Definitely A) Fairness and Non-Discrimination. It's crucial!
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Alesia
5 days ago
Privacy and security are important, but in this context, I think addressing fairness should come first. We can't ignore the impact on those communities.
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Pedro
10 days ago
I feel like accountability is crucial too, especially if the institution needs to take responsibility for the AI's decisions. It seems like a similar question came up in our practice exams.
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Mariann
15 days ago
I'm not entirely sure, but I remember we discussed transparency and explainability in relation to AI decisions. It might help applicants understand why they were denied.
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Ben
2 months ago
I think fairness and non-discrimination is the most important here. We studied a case where bias in AI led to similar issues.
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