What would you do if one of team members you lead is your best friend and made a big mistake in work?

As a friend I will caution him for the first time but if he keep repeating such mistake then I will take action before the action will be taken on me.

Being a leader, I have to ensure transparency and merit Being a friend, the best I can do for a friend in such a situation is "let him face the music" OR look for an agreeable compensation policy to recover the losses AND restore the things Mistakes can be forgiven but not crimes ... Everyone deserves a second chance

i will clear the  that problem that work. in my team and all memebers