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:
- Acceptance of that risk — this would be where organizations choose to retain that risk.
- 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.
- Reduction of risk — this option is one where the organization can reduce the likelihood and/or consequence of that risk.
- 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.
