Charles Sturt University
Charles Sturt University

Treatments: Different Ways to manage risks

Once we understand the risks (i.e. have been able to articulate) them, and we know the causes and controls (what we currently have in place to modify the risk), then we need to look at how we 'Treat' a risk or opportunity.

Treatments are options for modifying risks and implementing those options.  The treatment provide or modifies the controls,

Risk treatment is a cyclical process involving:

Risk Treatment Cycle

When considering options for treating risks, it should be noted that options are not mutually exclusive, nor are the appropriate in all circumstance.  The options can include:

  • AVOIDING the risk by deciding not to start or continue with the activity that gives rise to the risk;
  • TAKING or INCREASING the risk in order to pursue an opportunity;
  • REMOVING the source of the risk;
  • CHANGING the likelihood or the risk occurring or the consequences if it does occur;
  • SHARING the risk with another party or parties (including contracts and risk financing); and
  • RETAINING the risk by informed decision.