CRISC · Question #240
An organization recently implemented a machine learning-based solution to monitor IT usage and analyze user behavior in an effort to detect internal fraud. Which of the following is MOST likely to…
The correct answer is A. Risk likelihood. Implementing a new machine learning-based solution to detect internal fraud directly affects the probability of fraud occurring or going undetected, thus most likely requiring a reassessment of risk likelihood.
Question
An organization recently implemented a machine learning-based solution to monitor IT usage and analyze user behavior in an effort to detect internal fraud. Which of the following is MOST likely to be reassessed as a result of this initiative?
Options
- ARisk likelihood
- BRisk culture
- CRisk appetite
- DRisk capacity
How the community answered
(34 responses)- A79% (27)
- B6% (2)
- C3% (1)
- D12% (4)
Why each option
Implementing a new machine learning-based solution to detect internal fraud directly affects the probability of fraud occurring or going undetected, thus most likely requiring a reassessment of risk likelihood.
A machine learning-based solution designed to detect internal fraud directly improves the organization's ability to identify and prevent such incidents. This enhancement significantly reduces the probability or frequency of a fraud event occurring or going unnoticed, thereby necessitating a reassessment of the likelihood component of fraud-related risks.
Risk culture refers to the shared values and attitudes towards risk, which isn't directly changed by the implementation of a technical detection solution.
Risk appetite is the level of risk an organization is willing to take, a strategic decision that is not immediately altered by a control implementation.
Risk capacity is the maximum risk an organization can absorb, which is also a strategic and financial consideration, not directly affected by an improved detection control.
Concept tested: Impact of controls on risk likelihood
Source: https://learn.microsoft.com/en-us/compliance/regulatory/risk-management-framework-identify-and-assess-risks
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