“Risk comes from not knowing what you’re doing.”
Buffett in his usual wisdom says something that here that must be examined. It's very simple to understand and yet very few do it.
Do what? Know what they're doing.
Many people look at risk as entering into ventures that sound scary and unsure to them. Yet for those that know what they're doing, it's really not a risk at all.
There have been times in managements I've worked with where there is great risk to the company and the manager because they're in a job that's over their head. 
This is setting both an individual or a company up for failure. What a disaster this can be!
I remember a millionaire business owner saying one time that the key to this is knowing your business inside and out, and just enough about the secondary things so you know what's going on.
Buffett has said that even though he's sure some companies are great companies, he wouldn't invest in them if he doesn't understand them. Management is the same thing. He must know the managers he hires, as they're as important a part of the mix as the company in his eyes. He won't buy for Berkshire Hathaway (BRK-A) without these being part of the deal.
While all of this sounds like understatements, in truth there aren't that many great managers or business owners that are truly masters of their disciplines. If we aren't, we've put ourselves at risk.
What's the risk? Someone else may know what they're doing more than us. That person and company is a direct threat to us and we may not even know it.
An interesting note on this is that the one that has mastered their business is able to see the weaknesses of those that haven't. Those that don't know what they're doing as well as their competitors aren't able to see the same things. It's a huge blind spot that they don't see and is a risk unknown until it's too late to respond to.
We need to be masters of what we do, that's the true answer to lowering risk.
Other Buffett Sources:
10 Secrets Hidden in Warren Buffett's Wallet
The Warren Buffett You Don't Know
Warren Buffet-Strategic Planning
Some practical advice from investment guru Warren Buffett
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