Risk avoidance is a type of risk management that involves taking steps to get rid of risk by staying away from the activity or situation that causes it. This strategy is often used when the possible effects of risk are so big that the project or organization can’t deal with them.
Risk avoidance in project management can be done in a number of ways, such as by changing the project scope, the order of activities, or the project goals. For example, a project team may decide to avoid a high-risk activity that is essential to the success of the project by changing the scope of the project to leave out the activity or by changing the order of the activities to reduce the risk.
Risk avoidance can be a good strategy when the cost of avoiding the risk is less than the cost of managing or accepting the risk. But it’s important to think about how avoiding risks might affect project goals, since it could cause delays or changes to the project’s scope.
Risk avoidance is often the best way to deal with risks that aren’t essential to the success of a project and can be easily avoided without changing the project’s goals. But it may not always be possible or sensible to avoid risk. In these situations, it may be better to use other types of risk management, such as risk mitigation or risk transfer.
In short, risk avoidance is a risk management strategy that involves taking steps to get rid of risk by staying away from the activity or situation that causes it. It can work when the potential impact of a risk is so big that the project or organization can’t handle it and when the cost of avoiding the risk is less than the cost of managing or accepting the risk.
Usage
It is used in Risk Management
