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- Methods of risk evasion
- Methods of localization of risks
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Risk management methods

In the conditions of action of various external and internal factors of risk various methods of risk reduction influencing these or those aspects of activity of the enterprise can be used.

The variety of the risk management methods applied in business activity can be divided into 4 groups with which you can get acquainted:

Risk management methods:
1.methods of risk evasion
2.methods of localization of risks
3.risk diversification methods
4.methods of compensation of risks

When choosing concrete risk management method the risk manager has to proceed from the following principles:

  • it is impossible to risk more, than it is able to afford equity;
  • it is impossible to risk much for the sake of small;
  • it is necessary to foresee risk consequences.