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.
How to Manually Mitigate a Risk
By default, the strategy for newly created risks is set to Strategy Pending.
To manually update the 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 mitigation strategy:
Mitigate risk
Accept risk
Avoid risk
Transfer risk
Fill out any custom mitigation fields that appear.
For details on how to create and configure these fields, refer to our guide on Risk Settings
Adding Mitigation Controls and Tasks
While updating a risk strategy, you can connect specific controls or tasks to act as mitigation measures.
To connect controls or tasks:
During the strategy update, click to add a mitigation connection.
A side panel will open. Select the checkboxes next to existing controls or tasks to link them to the risk.
You can also click on Create new task to instantly draft and link a brand-new mitigation task without leaving the window.
Adjusting Risk Scores and Version History
Once your strategy and controls are defined, you must set the new risk score.
In the scoring section of the update window, manually adjust the risk's Probability and Consequence levels based on your mitigation efforts.
Click Create to generate your new residual risk score.
The system will create a new risk version and include it in the visual matrix showing the risk score progression.
Your newly saved risk strategy is stored under Version history. You can click on any previous version in this section to review the historical progression of the risk at any time.
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.
Common Questions
Can the naming of 'Consequence' and 'Probability' be changed?
Yes, in the settings.What is the maximum size of the risk matrix?
The risk matrix can range from 3×3 up to 10×10. It is configured within Risk Types by adjusting and modifying the levels of Consequence (x-axis) and Probability (y-axis).
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.