Which of the following is an example of a risk avoidance strategy?
A.
Outsourcing the payroll function
B.
Installing cameras in the mailroom
C.
Exiting a product line
D.
Insuring all fixed assets
The Answer Is:
C
This question includes an explanation.
Explanation:
Exiting a product line is an example of risk avoidance. This strategy involves eliminating a specific threat or risk entirely by discontinuing the activity that generates the risk. In this context, ceasing operations of a product line effectively removes all associated risks related to that line of business.
Risk management strategies and concepts
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