In which of the following circumstances would a risk manager consider risk avoidance to be appropriate?

Question

Quizplus · Accepted Answer

Risk avoidance is appropriate when the disadvantages of an activity outweigh the advantages. This means that the potential negative consequences of the activity are too severe to justify its benefits, and it would be better to avoid the activity altogether. In contrast, options A and B involve minimizing or transferring risk rather than avoiding it altogether, while option D suggests that the benefits of the activity outweigh the risks, making risk avoidance unnecessary.

In Which of the Following Circumstances Would a Risk Manager