The process of eliminating risk by choosing not to participate in an action or activity is known as?

The process of eliminating risk by choosing not to participate in an action or activity is known as risk avoidance. This approach involves identifying potential risks and deciding to avoid them entirely by not engaging in the activity that could lead to those risks. For example, an organization may decide not to develop a new product if there are significant legal risks associated with that product's launch. By not entering into the situation that presents the risk, the organization effectively eliminates the possibility of facing those specific risks, thereby securing itself from potential negative consequences.

Risk acceptance refers to a scenario where an organization acknowledges the existence of a risk but decides to proceed regardless, often because the costs of mitigation outweigh the potential impact of the risk. Residual risk pertains to the level of risk that remains after actions are taken to mitigate or manage it. Risk mitigation involves taking steps to reduce the severity or likelihood of a risk but does not eliminate participation in the risk altogether.