Question 28
Domain 3 — Risk Response and ReportingWhich risk treatment strategy involves deciding not to engage in an activity that creates risk?
Correct answer: B
Explanation
Risk avoidance means choosing not to do the activity that creates the exposure. By eliminating the risky action entirely, the organization removes the chance of loss from that source rather than reducing or transferring it.
Why each option is right or wrong
A. Risk mitigation
B. Risk avoidance
Under standard risk management terminology, the strategy that eliminates exposure by declining to undertake the underlying activity is risk avoidance. Unlike mitigation, transfer, or acceptance, it removes the risk source entirely by not proceeding with the action that would create the loss event.
C. Risk sharing
D. Risk exploitation