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4 Examples of Risk Avoidance

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Risk avoidance is a risk treatment that avoids, sidesteps or discontinues the actions that trigger a particular risk. The following are a few examples:

Business Strategy

A bank considers expanding its products to include financial derivatives. After completing a business plan, the bank determines that the plan is risky and decides not to pursue the strategy.


An investment adviser recommends a stock to a client. The client reads the company's most recent financial report and finds it's a complex business with difficult to understand risk factors and decides against the investment.

Health & Safety

A company shuts down a construction site in bad weather to avoid the risk that someone will get hurt.

Information Security

A retailer discontinues collection of personal data such as customer's ages and telephone numbers to avoid the risk that such data would be stolen in an information security incident.
Overview: Risk Avoidance
Choosing to avoid actions that trigger a risk.
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