Which of the following would a risk manager consider to be circumstances where risk avoidance is appropriate?

Question

Quizplus · Accepted Answer

Risk avoidance is appropriate when the disadvantages of undertaking an activity outweigh the potential advantages. In such circumstances, it is better to avoid the risk altogether rather than trying to mitigate it or transfer it. Choices A and B suggest risk mitigation strategies (diversion to another and risk transfer) and choice D suggests that the advantages of an activity outweigh the potential undesirable outcomes, which indicates a willingness to accept risk.

Which of the Following Would a Risk Manager Consider to Be