Due to unfavorable economic conditions management decided to postpone new investments for the next year. Which of the following best describes the risk management strategy used to address this situation?
Risk avoidance is a strategy where an organization decides not to engage in actions or activities that carry risk. By choosing to postpone new investments due to unfavorable economic conditions, management is opting to completely avoid the risks associated with these investments under the current economic scenario.
Institute of Internal Auditors (IIA) Glossary and Standards.
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