risk avoidance

Definition

A risk management technique that seeks to eliminate any possibility of risk through hazard prevention, or the discontinuation of activities determined to entail any level of risk. Often used in extreme situations where the risk exposure creates an extraordinary liability potential.

Use risk avoidance in a sentence

Our risk avoidance strategy was working quite well for us and everything was going very smoothly and efficiently in the company.

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Since he was creeping up in age, his portfolio management became one of risk avoidance, whereas he just simply wanted safe, steady income throughout his golden years.

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Taking the example of a coffee shop - Burnt coffee could be a risk that has to be avoided, reason being, such a coffee will have to thrown away and not served to customers. This causes lot of wastage and hence other unnecessary expenses are incurred. The risk avoidance technique put in place by the coffee shop to avoid this risk might be, installing temperature controlling thermostats in the electronic coffee brewers to maintain the brewing temperature a constant always.

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