An AI audit reveals that a loan approval model has a significantly higher rejection rate...

A significantly higher rejection rate is a clear indicator of potentialalgorithmic discrimination. Management’s PRIMARY response should be to conduct acomprehensive bias analysis(C), including fairness metrics, root-cause analysis, model explainability assessments, and data quality reviews. AAIA prioritizes fairness auditing and bias remediation as central to AI governance.

Option A is unacceptable because fairness issues fall outside most risk tolerances. Option B is a procedural check, not the solution. Option D (synthesizing data) might help butonly afterthe root cause is identified—it is not the primary first step.