What term describes the act of avoiding or keeping away from a risk?

What term describes the act of avoiding or keeping away from a risk?

• A. Risk Acceptance
• B. Risk Transfer
• C. Risk Avoidance
• D. Risk Reduction

Answer: (C)

The act of avoiding or keeping away from a risk is risk avoidance. This strategy means choosing not to engage in the activity or to remove the hazard so the exposure never occurs. It’s about eliminating the risk entirely rather than trying to live with it or share it. Why this fits best: It directly describes not taking on the risk at all. By avoiding the activity, you prevent any chance of loss, which is different from reducing the risk, transferring it, or simply accepting it. To contrast briefly: risk reduction lowers either the likelihood or the impact of a risk while still engaging in the activity; risk transfer shifts the risk to another party (like insurance); risk acceptance means acknowledging the risk and taking no action.

The act of avoiding or keeping away from a risk is risk avoidance. This strategy means choosing not to engage in the activity or to remove the hazard so the exposure never occurs. It’s about eliminating the risk entirely rather than trying to live with it or share it.

Why this fits best: It directly describes not taking on the risk at all. By avoiding the activity, you prevent any chance of loss, which is different from reducing the risk, transferring it, or simply accepting it.

To contrast briefly: risk reduction lowers either the likelihood or the impact of a risk while still engaging in the activity; risk transfer shifts the risk to another party (like insurance); risk acceptance means acknowledging the risk and taking no action.