Setting up an IV bag involves several steps: 1. Hand Hygiene: Proper hand washing to prevent infection. 2. Preparation: Gather necessary supplies such as the IV bag, tubing, and antiseptic wipes. 3. Prime the Line: Remove air from the tubing to prevent air embolism. 4. Insert the Cannula: Choose an appropriate vein and insert the IV cannula. 5. Connect and Monitor: Attach the IV tubing to the cannula and monitor the flow rate and patient response.