US CMA Part 2 · Chapter 7 · Question 14 of 15
A company decides to withdraw entirely from a politically unstable country rather than continue operating there. This risk response is:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Avoidance
Explanation
Avoidance eliminates a risk by exiting or not undertaking the activity that creates it. It is appropriate when no other response brings the risk within the organization's risk appetite at an acceptable cost. Reduction lowers likelihood or impact, sharing transfers part of the risk, and acceptance retains it.
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