According to IIA guidance, the standard risk treatments outlined in the process element approach of the framework for risk management include the following steps:
Risk Identification: Identifying potential risks that could affect the achievement of objectives.
Risk Assessment: Evaluating the identified risks in terms of their likelihood and impact.
Application of Controls: Implementing measures to mitigate or manage the identified risks.
Risk Acceptance: Deciding to accept the risk when it falls within the organization ' s risk appetite or tolerance levels.
These steps are part of a structured approach to managing risks, ensuring that risks are systematically identified, assessed, and managed through appropriate controls and that acceptance of residual risks is aligned with the organization ' s strategic objectives and risk appetite.
IIA Practice Guide: Assessing the Adequacy of Risk Management Using ISO 31000
COSO Enterprise Risk Management Framework
