What is the risk avoidance?

Economics Risk And Return Questions



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What is the risk avoidance?

Risk avoidance refers to the strategy of completely avoiding or eliminating any exposure to potential risks or uncertainties. It involves taking measures to prevent or minimize the likelihood of negative outcomes or losses by not engaging in activities or investments that carry significant risks. Risk avoidance is often employed by individuals or organizations who prioritize the preservation of capital and are unwilling to take on any level of risk.