CAF-3 · Chapter 14 · Question 4 of 15
A financial institution researches the cryptocurrency market but decides not to launch a trading platform due to highly uncertain and strict regulatory laws. Which risk treatment strategy does this decision represent?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Risk Avoidance
Explanation
Risk avoidance involves eliminating the risk entirely by avoiding the activity that generates it. This is suitable when the risk is too high and no mitigation strategy is feasible
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