MANAGEMENT

Detailed explanation-1: -Risk avoidance means you’re trying to avoid compromising events as a way to eliminate liability exposures. Risk reduction is a way to help you control the damages to your business, like claims or losses. Learn more about risk avoidance versus risk reduction and how you can use both as part of your risk management plan.

Detailed explanation-2: -A risk, in a business context, is anything that threatens an organization’s ability to generate profits at its target levels; in the long term, risks can threaten an organization’s sustainability.

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: -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.