To 'Avoid' a risk means to eliminate the possibility of the risk occurring or to remove the organization's exposure to that risk entirely. This can be achieved by not engaging in activities that lead to the risk or by changing business processes to bypass the risk. It is essential to distinguish this proactive strategy from other strategies like 'Transfer', which entails shifting the risk to another party, or 'Mitigate', which involves reducing the potential impact or likelihood of the risk.
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What are some examples of avoiding a risk in real-world scenarios?
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How does 'Avoiding' a risk differ from 'Mitigating' it?
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Are there any downsides to the risk avoidance strategy?