The company assumes increased obligations and higher: Which consequence most accurately reflects that choice?

Deploying your own proprietary model brings increased obligations and higher potential liability.

The question

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1. The company eliminates all responsibility for model behavior because it now controls the entire pipeline internally.

   Plausible but wrong: owning the pipeline increases, rather than eliminates, responsibility and liability.
2. The company inherits the vendor's indemnification protections that would otherwise cap its downstream exposure.

   Almost right in mentioning indemnity, but building in-house means there is no vendor to provide such protection.
3. The company assumes increased obligations and higher potential liability for the model it develops itself. ✓

   Correct because IV.B.3 highlights that deploying one's own proprietary model brings increased obligations and higher potential liability.
4. The company avoids the need to conduct any impact assessment since no external system is being integrated.

   Plausible but wrong: impact assessments remain required regardless of whether the model is built or bought.

How to remember it

Deploying your own proprietary model brings increased obligations and higher potential liability.

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