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Risk Treatment

Risk treatment refers to when a firm applies risk controls and other strategies in response to risk.

Selecting the most appropriate risk treatment options involves balancing the potential benefits derived from enhancing the achievement of objectives against the costs, efforts or disadvantages involved in the proposed actions.

Our Risk Treatment course will help you learn how to respond to various types of risks and how they can be treated to minimise their negative probability and impact.

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  • 40 Minutes
  • For all staff
  • Based on best-practice risk management frameworks and suitable for global audiences.

Learning objectives

  • Understand how risk treatment as a process fits into the broader risk management framework
  • Apply various types of risk treatment options depending on the type of risk
  • Understand the importance of risk controls and how to implement them

    What can you expect your employees to learn?

Welcome

  • Learning objectives
  • How to complete this course

What is risk treatment?

  • The Management of Risk (M0R) framework

How should we respond to risk?

Inherent versus residual risk

Selecting the most appropriate risk treatment option

Risk acceptance

  • Example: Risk acceptance

Risk transfer

  • Example: Risk transfer

Implementing risk controls

  • You decide: Implementing risk controls

Contingency planning

  • Examples: Contingency planning

Terminating activities that result in risk

Roles of business continuity & operational resilience in risk treatment

Benefits of risk controls

  • You decide: What are examples of risk controls for different types of risks?

What is a risk control environment?

  • What is a risk control appetite?
  • What are the different types of risk controls?

Risk treatment & the Three Lines of Defence (3LoD) model

Role of the board of directors in a risk control framework

  • You decide: What are the board of directors' responsibilities?
  • Additional committees on the board of directors

Role of senior management in the risk control framework

Role of the first, second & third LoD in the risk control programme

What role should cost-benefit analysis (CBA) play in risk treatment?

How should a company then implement its risk response?

Importance of duty segregation when implementing risk controls

  • You decide: Conflicts of interest that can impede risk control implementation

Summary

Affirmation

Assessment

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Your questions, answered

Risk Management

How does conduct risk differ from compliance risk?

Conduct risk focuses on behaviour and outcomes, how actions affect customers and markets -  while compliance risk relates to failing to meet legal or regulatory requirements. Conduct risk is broader and more subjective, often tied to culture and ethics.

Who is responsible for managing conduct risk within a firm?

While senior leadership sets the tone, managing conduct risk is a shared responsibility across all levels, from front-line staff to compliance teams. Everyone plays a role in identifying and mitigating risky behaviour.

Can conduct risk exist in non-financial sectors?

Yes. Although the FCA regulates financial services, conduct risk principles apply across industries. Any business that interacts with customers or influences markets can face conduct-related challenges.

How can technology help reduce conduct risk?

Tools like automated monitoring systems, AI-driven analytics, and e-learning platforms can help detect risky patterns, reinforce ethical behaviour, and ensure consistent training across teams.

How often should proliferation financing risk assessments be updated?

Best practice suggests reviewing risk assessments annually or whenever there are significant changes in business operations, customer profiles, or geopolitical developments.

Why is risk scoring important for my business?

Identifying potential risks around your business is not enough. Tracking how your company manages them helps you implement policies to prevent them. The best way to get started is with a risk scoring matrix.

What is a risk scoring matrix?

A risk scoring matrix helps identify the level of risk for specific activities, such as personal data. By measuring the likelihood of something happening against how serious the consequences would be, it helps you see which areas to focus on. And what policies or procedures to put in place.

Related courses

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