In risk management, what is the term for the choice to not engage in a risky behavior?

The term that refers to the choice to not engage in a risky behavior is risk avoidance. This concept is fundamental in risk management strategies, where individuals or organizations make decisions to eliminate exposure to certain risks altogether. For example, a company may choose not to enter a particular market or invest in certain high-risk ventures because they assess that the potential negatives outweigh any possible benefits.

Risk avoidance is distinct from other strategies like risk control, which involves implementing measures to reduce the likelihood or impact of a risk, and risk retention, where an entity acknowledges the risk but decides to accept it rather than avoid or transfer it. Choosing to avoid a risk entirely is a proactive approach to managing potential negative outcomes.