Read the article on How to adjust for Risk in Capital Budgeting. Though the author calls these steps they are actually different methods. They may overlap in accounting for risk, and if you were to do all of them, you may end up with a more negative result than even the worst case. For example, Steps 1 and 3 both essentially adjust the discount rate.

Anyway, if you were to choose only one of these methods to adjust for risk, which one would you choose and why?

How to Adjust for Risk in Capital Budgeting (chron.com)