An informed decision not to become involved with, or continue with, a risk situation. The potential loss is regarded as greater than the potential value of the risk-creating activity, e.g. using PCBs in manufacturing processes, building on flood plains.
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Any measure which reduces to zero the probability of a loss from a given exposure may be property classified as risk avoidance. Risk avoidance may be achieved by either abandoning or never undertaking an asset or activity which involves the loss exposure being avoided. (By some authorities, risk avoidance is also called ‘risk elimination’ because risk avoidance eliminates entirely a given exposure to loss.)