Which strategy involves removing the risk entirely?

The strategy that involves removing the risk entirely is known as risk avoidance. This approach focuses on identifying potential risks and taking proactive measures to eliminate them before they can impact the project, organization, or individual. By choosing not to engage in activities that generate risk or by modifying plans and processes to circumvent these risks, the organization can effectively eliminate the threat from the onset.

For example, if a company identifies that entering a specific market poses significant legal or financial risks, it may decide not to pursue that market at all, thereby completely avoiding any associated risks. This proactive stance is essential for maintaining operational integrity and ensuring that strategic goals can be pursued without the threat of adverse consequences arising from identified risks.

In contrast, the other approaches aim to manage risk rather than eliminate it completely. Risk mitigation involves implementing measures to reduce the impact or likelihood of risks, risk transfer involves shifting the risk to another party (like through insurance), and risk acceptance means acknowledging the risk and preparing to deal with its consequences without taking further action to avoid it.