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FINTECH-FUNDAMENTALS4 MIN READ

Risk Treatment Moves To Keep Handy

Recall the main risk treatment moves and recognize when each fits a fintech decision.

Core move When is accepting a fintech risk reasonable? When residual risk is inside appetite, the owner is named, and a guardrail will show if exposure changes. Acceptance is a decision with monitoring, not a lack of decision. Compare Reduce risk vs. avoid risk: which is which? Avoid removes the activity; reduce changes the risk profile so the activity can proceed. Objection We can just monitor this after launch. A team wants to launch a high-limit payout flow with no new controls. Your line Monitoring tells us risk is happening; it does not treat the risk. What is our treatment:…

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