Risk avoidance is a strategy used to eliminate potential risks by changing plans or behaviors. For example, a company might decide not to enter a new market if it perceives high financial risks associated with it. By avoiding the risk altogether, the organization aims to protect its resources and ensure stability. This approach can also apply to personal decisions. For instance, an individual might choose not to invest in stocks during a volatile market to avoid the risk of losing money. By steering clear of uncertain situations, people and organizations can maintain a more secure and predictable environment.