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: -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.

Detailed explanation-3: -Risk avoidance is the elimination of hazards, activities and exposures that can negatively affect an organization and its assets. Whereas risk management aims to control the damages and financial consequences of threatening events, risk avoidance seeks to avoid compromising events entirely.

Detailed explanation-4: -Avoidance: Many times it is not possible to completely avoid risk but the possibility should not be overlooked. For example, at the height of a thunderstorm, Physical Plant may not release vehicles for travel until the weather begins to clear, thus avoiding the risk of auto accidents during severe weather.