is simply to avoid the risk.For a firm, it might mean taking an effective but dangerous product off the market even though it does the job well when used safely. Risk avoidance is an effective way to cut losses. The problem is that in avoiding the risks of some activities, one also avoids the benefits. Firms that avoid new products because they might be risky cut themselves off from markets that might be profitable. Risk avoidance may not always be the answer in risk management.
