Knowing how to manage risk is vital for any organization. Here are four steps to build a risk-management framework adapted from Forbes.
1. Asses the risk in question. What is it?
2. Categorize the risk. Is it minor or severe? Is it common? Is it rare?
3. Consider your options. Will you avoid the risk? Reduce the risk? Transfer the risk? How much of the risk will be retained?
4. Implement your strategy.