MANAGEMENT

Detailed explanation-1: -Risk Avoidance Example For example, you may realize sending employees to work at a customer’s home can open your business to more risk of bodily injury, vicarious liability or property damage claims. So, to reduce risk and avoid potential losses, you decide not to offer those kinds of services.

Detailed explanation-2: -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-3: -What is risk avoidance in insurance? Risk avoidance means running your company in a way that eliminates certain hazards and exposures that could result in an expensive lawsuit or a financial loss.

Detailed explanation-4: -damage by fire, flood or other natural disasters. unexpected financial loss due to an economic downturn, or bankruptcy of other businesses that owe you money. loss of important suppliers or customers. decrease in market share because new competitors or products enter the market.