Overview
The Risk module in Formalize provides a structured workflow for identifying, assessing, and managing risks. By combining configurable risk types, approval flows, and custom mitigation fields, the module ensures flexibility while supporting consistent risk governance across your organization.
Risk Strategy - Calculated Mitigation
By default, the strategy for newly created risks is set to Strategy Pending.
Follow these steps to apply a calculated mitigation strategy:
Open the specific Risk you want to manage.
Navigate to the Version history section and click Update risk strategy.
In the update window, select your desired strategy:
Mitigate risk
Accept risk
Avoid risk
Transfer risk
Note: Any custom mitigation fields configured for your account will appear here and must be filled out. For details, see our guide on Risk Settings.
Select Mitigate risk and then click Manage mitigations.
A side panel will open. Check the boxes next to the relevant controls to link them.
For each selected control, specify the exact percentage reduction it will have on the risk once it is fully implemented.
Click Save.
Once you save your calculated mitigation strategy, Formalize automatically tracks your progress.
Mitigation efforts: On the risk, you will see an overview of all linked mitigation connections, their current implementation status, and the numerical effect they will have on the risk once completed.
Target Score & Matrix: The system generates a new risk version that is included in the matrix showing the risk score progression. This includes a target score, indicating exactly how low the overall residual risk score will drop once all mitigation controls are implemented.
Automatic Updates: As your team implements the connected controls, the overall risk score will automatically update and decrease based on the percentages you set during setup.
Manual vs Calculated Mitigation
Before updating a risk, it is important to understand the two approaches Formalize uses to handle risk mitigation:
Manual mitigation: You manually define mitigation actions, controls, or processes to reduce risk. You decide what needs to be done, attach relevant measures, and manually set the new scores for probability and consequence.
Calculated mitigation: Risk reduction is modeled automatically by Formalize. Once a control tied to a risk is implemented, the system automatically recalculates the residual risk by an overall set percentage, reflecting the lower probability or consequence.
We hope this article was helpful!
If you have any additional questions, please reach out to us via chat in the bottom right corner of the page — our team is always happy to assist you further.