Risk treatment can be defined as an action involving the selection and implementation of relevant options for managing risk.

Those key options can include at least the following:

  1.  Acceptance of that risk — this would be where organizations choose to retain that risk.
  2. Avoidance of risk — this option would be where the organization decides not to carry on with the proposed activities due to the risk affecting those activities being seen as unacceptable.
  3. Reduction of risk — this option is one where the organization can reduce the likelihood and/or consequence of that risk.
  4. Transfer of risk — this option involves transferring that risk in part or in totality to another.  Getting the appropriate insurance for that risk is a normal example of risk transfer.

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