Soak it in waterglass if it is solid or take it to 600 grit, treat with epoxy or superglue and sand to near final finish, "stabilize" again and final polish. Don't let the dino bone get warm. I'd back it like you mentioned, tinted or filled epoxy works well also. If it isn't stable though on it's own you might want to reconsider using it, dino bone can vary a lot and it should be ultra tough.
By the way I have cut loads of it and never backed or treated any. (not for sale at least) If I felt it really needed it I just don't use it. It is locally found so I'm spoiled on the good stuff, I have gone through a few hundred pounds in the last few years. It is getting much harder to buy though, having a hard time finding larger solid stuff like I used to.
My friend has a Triceratops horn, that would make a sweet handle, lol, but it is going to a museum I'm sure.