Which of the following methods of risk management is a business firm practising when it chooses to terminate its delivery system to avoid the risk of physical damage or injury?

Question

Quizplus · Accepted Answer

Risk avoidance is the practice of eliminating or abstaining from engaging in activities that carry a high level of risk. In this case, the business firm is choosing to terminate its delivery system to completely avoid the risk of physical damage or injury, which constitutes risk avoidance.

Which of the Following Methods of Risk Management Is a Business