What is the design option that involves ceasing all activity or terminating sources that give rise to the opportunity, obstacle, or obligation?

What is the design option that involves ceasing all activity or terminating sources that give rise to the opportunity, obstacle, or obligation?
A . Accept
B . Share
C . Avoid
D . Control

View Answer

Answer: C

Explanation:

Avoid is a risk management strategy that involves stopping activities or removing sources of risk entirely.

Definition:

Avoidance eliminates the possibility of a risk occurring by ceasing the activity or terminating the risk source.

Examples:

Not entering a risky market.

Discontinuing a product line with regulatory risks.

Why Other Options Are Incorrect:

A (Accept): Involves acknowledging the risk and taking no additional action.

B (Share): Involves transferring part of the risk to another party (e.g., insurance).

D (Control): Involves reducing the likelihood or impact of a risk without eliminating it.

Reference: ISO 31000 (Risk Management): Highlights avoidance as one of the core risk treatment options.

COSO ERM Framework: Explains risk avoidance as a strategic decision to eliminate exposure.