What is the second rule of risk management

Measure probability and severity

The second rule of Risk Management is to Know the Risk Involved.

Explanation:

Risk Management is the process of managing risks involved in business or may be at individual level by identifying the risks involved and the measures taken to avoid or minimize that risk. There are three simplest rules of Managing the Risk. First of all, you need to know what you are doing. Second step is to find out or to Know the risk involved. In this stage you identify and evaluate the severity of risk. Then comes the third and final step in which you develop measures to avoid or minimize as much risk as possible. So in this way, risks are managed.