Ace the 2025 CPHRM Challenge – Rock Your Health Care Risk Management Skills!

Risk avoidance involves completely eliminating the chance of loss by not engaging in an activity that presents a risk. This means that if a certain action is deemed too risky and could result in adverse consequences, an individual or organization chooses to avoid that action altogether to ensure that risk is not present. For instance, a healthcare facility may decide not to implement a certain procedure that has known high risks associated with it. By doing so, they remove the possibility of encountering those risks and potential losses entirely.

The other options describe different approaches to managing risk rather than avoiding it outright. For example, accepting risk to improve learning speaks to embracing risk as an opportunity for growth and education, while minimizing activities that could cause loss implies continued engagement in some risk-laden activities but with heightened caution. Lastly, reducing potential losses through contractual agreements is a risk transfer strategy rather than avoidance, where the risk remains, but its financial impact may be mitigated via other means.