MANAGEMENT

Detailed explanation-1: -Risk is avoided when the organization refuses to accept it. The exposure is not permitted to come into existence. This is accomplished by simply not engaging in the action that gives rise to risk. If you do not want to risk losing your savings in a hazardous venture, then pick one where there is less risk.

Detailed explanation-2: -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.

Detailed explanation-3: -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.