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: -Risk can be succinctly defined as a “measure of the probability and consequence. of uncertain future events” (Yoe 2011). We can be even more succinct: Risk = Probability and Consequences. We use probability to capture the uncertainty surrounding the occurrence of an event.

Detailed explanation-3: -Common risk reduction mechanisms are security measures, policy enforcement, and employee education and awareness, as well as financial and legal positioning.

Detailed explanation-4: -Risk avoidance and risk reduction are two strategies to manage risk. Risk avoidance deals with eliminating any exposure to risk that poses a potential loss, while risk reduction deals with reducing the likelihood and severity of a possible loss.