Physical Security Professional Certification Practice Exam

Which risk management strategy eliminates the source of risk?

1. Risk assumption

2. Risk avoidance

3. Risk transfer

4. Risk reduction

The correct answer is: Risk avoidance

The chosen strategy of risk avoidance is the most effective method for eliminating a specific risk by removing the threat entirely. This can involve discontinuing the activities or behaviors that are associated with the risk, thereby preventing any potential negative outcomes from occurring. For instance, if a company determines that a certain business venture is too risky, it may choose to forgo that opportunity altogether, effectively eliminating that particular risk. Risk assumption, on the other hand, involves accepting the risk without taking action to avoid it, which does not eliminate the source of the risk. Risk transfer involves shifting the burden of a risk to another party, such as through insurance, but does not remove the risk itself. Lastly, risk reduction focuses on minimizing the impact or likelihood of a risk occurring, rather than eliminating it completely. Each of these strategies serves different purposes in a comprehensive risk management approach, but only risk avoidance addresses the issue by completely eliminating the source of the risk.