Which of the following statements regarding risk avoidance is true?
A) Risk avoidance is any activity that helps evade an act that creates a risk.
B) Risk avoidance is any activity that increases the chance that a loss will occur.
C) Risk avoidance is any activity that lessens the severity of loss once it occurs.
D) Risk avoidance is an act that reduces the probability that a loss will occur.
E) Risk avoidance is an effective way to handle many types of potentially small exposures to loss when insurance would be too expensive.

Question

Quizplus · Accepted Answer

Risk avoidance involves taking actions to avoid or eliminate risks altogether, rather than managing their impact. This can include not engaging in activities that are known to carry risk.

Which of the Following Statements Regarding Risk Avoidance Is True