Risk treatment involves deciding how to address identified risks based on their severity, cost-benefit analysis, and alignment with risk appetite. The four primary strategies are: avoiding the risk by eliminating the activity, reducing likelihood or impact through controls, transferring the risk via insurance or contracts, or accepting the risk with appropriate justification. Treatment selection considers effectiveness, feasibility, and cost. A software company evaluating data breach risk might avoid certain high-risk international markets, reduce risk through encryption and access controls, transfer financial exposure via cyber insurance, and accept residual risk within approved tolerances, documenting each decision with rationale and accountability.