Ismael has uncovered that his organization's financial accounting software is improperly configured, resulting in the reporting of inaccurate data on a continuous basis. What category of risk does this fall under?

Inherent risk refers to the risk that exists in an organization's processes, systems, or operations even in the absence of controls. It represents the susceptibility to errors, inaccuracies, or vulnerabilities that are inherent to the nature of the activities being performed.
In this case, the improper configuration of the financial accounting software leads to the reporting of inaccurate data on an ongoing basis. This issue is a result of inherent risk because it is a fundamental flaw in the system itself, independent of any control measures that may or may not be in place.