There are several methods of risk management.

There are four ways of risk management: avoidance, reduction, sharing and acceptance.

1. Risk Avoidance: Avoidance refers to an enterprise's withdrawal from activities that will generate risks. Risk aversion may include withdrawing from the product line, refusing to expand into new regional markets or selling branches. If enterprises choose avoidance strategy, it means that all countermeasures cannot reduce the impact and possibility of risks to an acceptable level.

2. Risk reduction: Risk reduction means that enterprises take measures to reduce the possibility or impact of risks, or both. It involves almost all kinds of daily business decisions. After adopting the reduction strategy, the enterprise can reduce the residual risk to the level coordinated with the expected risk tolerance.

3. Risk transfer: Sharing requires enterprises to reduce the possibility or impact of risks through risk transfer, or share some risks. Common technologies include buying insurance products, engaging in hedging transactions or outsourcing business activities.

4. Risk acceptance: The essence of accepting risk is that the inherent risk is lower than its acceptable risk tolerance level, so there is no need to take any risk reduction measures.