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Governance, Risk, Audit & Privacy · Foundational

Risk Avoidance

Eliminating a risk by not starting or by discontinuing the activity that creates it.

Definition

Risk avoidance removes exposure entirely by choosing not to pursue a project, product, technology, or market. It is appropriate when the risk exceeds appetite and cannot be reduced cost-effectively. Avoidance may also forfeit the benefits of the activity.

Example

A company decides not to store full card numbers so it avoids that portion of breach risk.

Exam tip

Avoidance means stopping the activity; do not confuse it with acceptance or mitigation.

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