In this episode, Tom and Vicki are getting into risk management and the four main ways to manage it. Whether you're a single person running a one-person operation or you are the CEO of a large company, risk is a dirty 4 letter word that plays a large part of what you need to do day to day.

 What is risk management? In a very simplistic answer, risk management is a fancy term for just trying to find the likelihood that bad things could happen and finding strategies on how to manage those bad things.

How do we start to do that?

By answering these questions:

1. Why should we protect or mitigate risk against any assets to begin with?
2.  the how so after we've determine the Y and the what finally we need to find possible solutions to protect these assets and find that strategy that makes the most sense to us
3. really need to go through and ask is what assets are we going to protect 

After you answer those questions, there are 4 main ways to manage risk:

1. Accept: not trying to avoid or mitigate a risk but choose to deal with it
2. Avoid: risks that have a high probability of great impact sometimes should be avoided completely
3. Reduce: having a plan in place to reduce the effect of a specific risk
4. Transfer: Transferring the particular risk to another party

What does all of this boil down to? Have a plan for when bad sh*t happens.

 

To learn more about risk and how to manage it, tune into this episode! You can also find more by visiting our website www.defiantenterprises.com or sending us a note [email protected]!