MANAGEMENT

Detailed explanation-1: -Common risk reduction mechanisms are security measures, policy enforcement, and employee education and awareness, as well as financial and legal positioning.

Detailed explanation-2: -An example of risk avoidance might be a manufacturing business not using certain hazardous materials or chemicals due to the dangers of handling and storing them; or, an organization limiting the type of customer data it stores on its computers in case of a cyberattack.

Detailed explanation-3: -Risk avoidance means completely eliminating any hazard that might harm the organization, its assets, or its stakeholders; and removing the chance that the risk might become a reality. This strategy aims to deflect as many threats as possible to avoid their costly consequences.

Detailed explanation-4: -Risk avoidance is an approach that eliminates any exposure to risk that poses a potential loss. Risk reduction deals with mitigating potential losses by reducing the likelihood and severity of a possible loss.