TARA risk treatment model
TARA groups responses to a risk into transfer, avoid, reduce and accept. SARA uses share in place of transfer to emphasise that arrangements such as insurance or contracting do not normally remove every consequence or responsibility. The framework helps compare practical responses in light of likelihood, impact, cost, risk appetite and remaining exposure. A combination of responses may be appropriate, and the choice needs ownership and review.
Worked example
A company reduces fire risk through prevention controls, shares some financial consequences through insurance and accepts the policy excess and other remaining exposure. It avoids a particularly hazardous activity whose risk cannot be managed acceptably.
Common mistake
In this risk-treatment context TARA does not stand for threat and risk assessment. Transfer also does not mean every legal, operational and reputational consequence disappears.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | SBL | Direct | September 2026–June 2027 |