Which type of fraud prevention involves risk assessments and security audits?

The correct answer involves administrative security controls because this category encompasses strategies and policies focused on recognizing and managing potential risks. Risk assessments are critical elements in this context, as they help organizations identify vulnerabilities and threats to their financial transactions and overall operations. Security audits also fall under administrative controls, providing systematic evaluations of security policies and procedures to ensure compliance and effectiveness in mitigating fraud risks.

While technical security measures focus on software and hardware solutions designed to protect against unauthorized access and threats, they do not inherently involve the broader strategic considerations of risk assessments and audits. Similarly, operational security procedures relate to the practices and tasks carried out by employees to protect sensitive information but do not directly involve risk assessments as a routine process. Physical security controls are concerned with tangible aspects like locks and surveillance, which protect physical assets rather than addressing generic risk assessments and audits. Therefore, administrative security controls are the most fitting option for this question.