Which term describes a strategy that involves stopping a risky activity or choosing a less risky alternative?

Which term describes a strategy that involves stopping a risky activity or choosing a less risky alternative?

• A. Risk Avoidance
• B. Risk Management
• C. Risk Mitigation
• D. Risk Transference

Answer: (A)

Risk avoidance describes choosing not to engage in the risky activity or opting for a safer alternative, effectively removing the exposure to the risk. This is why it best fits a strategy that involves stopping the risky activity or changing to a less risky option. The other terms describe different approaches: risk management is the overall process of handling risk; risk mitigation reduces the probability or impact of a risk with controls; risk transference shifts the risk to another party, such as through insurance.

Risk avoidance describes choosing not to engage in the risky activity or opting for a safer alternative, effectively removing the exposure to the risk. This is why it best fits a strategy that involves stopping the risky activity or changing to a less risky option. The other terms describe different approaches: risk management is the overall process of handling risk; risk mitigation reduces the probability or impact of a risk with controls; risk transference shifts the risk to another party, such as through insurance.