LO 9.4.3.C

Learning Objective: Describe the three risks that require ongoing monitoring.

Review

• Three risks

• Operational risk: Poor design and testing. Selected outdated procedures, not fitted  for AI and ML implementation.
• Regulatory risk: Generation of incorrect regulatory reports. Bot processing can inadvertently infringe the law or business policies
• Technological risk: Cyber attacks and persistent technological failures pose a serious risk to the company's reputation and operations.