What does risk avoidance involve?

Risk avoidance involves eliminating activities or processes that introduce risk. This approach aims to completely remove the potential for risks from a project or operation, thus preventing any negative impact that those risks might incur. By taking steps to avoid risk, an organization can maintain a safer operational environment and reduce vulnerability to threats.

For instance, if a company identifies that using a particular technology could expose them to cybersecurity threats, opting not to utilize that technology is a clear example of risk avoidance. This tactic is favored when the potential consequences or likelihood of the risk outweigh any potential benefits derived from the activity that introduces the risk.

In contrast, other strategies such as shifting risk through contracts or increasing budgets focus on managing risk rather than avoiding it altogether. Reducing likelihood or impact, while effective, does not eliminate the risk but merely mitigates it, which does not meet the criteria for total risk avoidance.