 In this section, I will be telling you the various techniques that are used to manage risk. So whenever we are intending to invest or we want to set up a business or we want to do any sort of investments in any type of investment opportunities, we have to face risk. So there are several standard ways of managing the risk that you are exposing yourself to when you are intending to invest or participate in any business activity. So the four major techniques that are used to manage risk include risk avoidance, loss prevention and control, risk retention and risk transfer. So I am going to explain each one of them in detail. When we say risk avoidance, it means that the investor or the businessman or the financial decision maker is consciously trying to avoid risk. That means they are managing the things in such a way that if there is any option which includes a high level of risk which exposes the businessman or an investor to a high level of risk, they will try to avoid these kinds of situations or these kinds of options and they will try to expose themselves only to those situations which have a minimum or lower level of risks. So for example, if you are scared that you might get any disease or any sickness or you might get yourself hurt in a road accident, the risk avoidance in this case implies that you don't go to the highways or you don't go out, you don't meet people in order to avoid germs, in order to avoid any sort of sickness. So if you feel that you will go to the road or highway to avoid accidents, then there would be such people who want to follow the risk avoidance strategy and manage the risk. So they don't expose themselves to any of these kinds of experiences where the risk is involved. So this particular strategy is called risk avoidance. But sometimes it is not possible to completely avoid risk because when you are if you are intending to invest in some investment opportunities or you want to do some business, then somewhat whatever risk avoidance you will get, you will be exposed to some kind of risk. So the management technique or risk management technique that is the loss prevention and control which means that the investor or the businessman takes some kind of a mails from which the likelihood or the probability of the severity of any incident or losses to reduce that severity or some kind of actions or some kind of consciously planning that how can I prevent this particular incident or any uncertainty or uncertain situation. So these types of actions can be taken before getting exposed to a certain activity during that particular activity or after getting exposed to risk severity or some kind of loss to minimize the severity of the loss. Third method is risk retention. The investor has sufficient finances that if some kind of loss or loss happens in some business, then they can bear it and tolerate it and get involved without taking any mails. So they just try to follow this policy of risk retention that they are if they get exposed to the risk. So they fully bear the expenses. So the last option that we have is risk transfer. Risk transfer is a strategy in which you can transfer your own exposure to a certain risk through financial institutions or businessmen or investors. And we can see different methods for transferring risk. For example, if you have financial instruments that have a high risk exposure to a certain risk, then you can sell it to someone. So what is the risk transfer? If you buy insurance for your business or business, then that is also a way of transferring your risk to the insurance company. And in case of any damages, or if there is a theft or a loss of your gadgets, or if there is a factory or a warehouse, or if there is a life insurance, then in that case, somebody else is going to be under the loss. So these are the four ways to which the risk can be managed. We can go for either any one of these, or we can simply pick up the combination. So we can go for the risk avoidance. We can take measures to prevent the losses and control. And then we can have the risk retention option. And then the last one is that you transfer the risks to some third party.