Key Terms

Risk Avoidance: ways to avoid risk that often involve serious trade off. 

(Example: avoid the risk of traffic accident by not driving to work.)

Risk Reduction: decreasing the likelihood of risks from occurring. (Example: wearing a seat belt to avoid injury in a car accident).

Risk Assumption: taking on responsibility for the negative. 

(Example: buying insurance for the iPad because you assume that something negative may happen to it.)