The Risk Manager then decides how to EAT those risks.
E - eliminate - sell off the trouble maker
A - assume - make corrective changes to make the risk less disastrous.
T - transfer - find an insurance company to take the risk for a premium payment.
Or you could go to Harvard Business School for 2 years and get a more complete answer.
First, you should be able to define risk. What type of risk are you trying to manage? Market risk, event risk, systematic risk, position risk, risk of death or destruction? What is it, specifically, that you don't understand about risk management?
http://www.investopedia.com/terms/r/risk...
Then you can manage risk.
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The ABC's of Risk Management
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Risk Management Techniques For Active Traders
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3 Tips to Better Risk Management
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