What is a main objective of risk treatment practices?

The primary goal of risk treatment practices is to actively manage identified risks. This involves developing strategies to mitigate, transfer, accept, or avoid risks to ensure that they are controlled and do not adversely impact the organization's objectives. By actively managing risks, organizations can enhance their resilience to potential threats and seize opportunities that may arise in a dynamic environment.

Risk treatment should not be about eliminating all risks completely, which is often impractical and unrealistic, as some level of risk is inherent in any endeavor. The objective is to balance risk-taking and risk management so that the potential benefits outweigh the downsides.

Additionally, managing risks effectively can help organizations decrease the likelihood of incurring significant financial liabilities or losses and allows for informed decision-making that can lead to improved operational efficiency and performance. It ensures that attention is given not only to loss allocation but also to a comprehensive approach that considers the broader implications of risks.