The risk from a natural hazard is determined by the combined understanding of three components:

Geologic Hazards: Volcanoes, Earthquakes, Tsunamis and More.

A geologic hazard is an extreme natural events in the crust of the earth that pose a threat to life and property, for example, earthquakes, volcanic eruptions, tsunamis (tidal waves) and landslides.

• hazard: how big and how often?
• exposure: what elements are at risk (people, buildings, infrastructure, agriculture etc.)?
• vulnerability: how does each exposed element respond to the level of hazard?

When someone introduces you to theatre, this is an example of a situation where you receive exposure to theatre. When you are outside for too long in the winter and get sick, this is an example of exposure.

Exposure – the location, attributes, and value of assets that are important to communities (people, buildings, factories, farmland, etc.) and that could be affected by a hazard. Vulnerability – the likelihood that assets will be damaged/destroyed/affected when exposed to a hazard.

The characteristics determined by physical, social, economic and environmental factors or processes which increase the susceptibility of an individual, a community, assets or systems to the impacts of hazards. Vulnerability is one of the defining components of disaster risk.

Vulnerability is most often associated with poverty, but it can also arise when people are isolated, insecure and defenceless in the face of risk, shock or stress. People differ in their exposure to risk as a result of their social group, gender, ethnic or other identity, age and other factors.

Being emotionally vulnerable undoubtedly has its risks. It means letting someone see who we really are, knowing that this means we risk being rejected or feeling abandoned.

In general, there are four types of risk treatment:

• Avoidance. You can choose not to take on the risk by avoiding the actions that cause the risk.
• Reduction. You can take mitigation actions that reduce the risk.
• Transfer. You can transfer all or part of the risk to a third party.
• Acceptance.
• Sharing.

Definition: Risk mitigation planning is the process of developing options and actions to enhance opportunities and reduce threats to project objectives [1]. Risk mitigation implementation is the process of executing risk mitigation actions.

Risk avoidance is the opposite of risk acceptance. It is the action that avoids any exposure to the risk whatsoever. It’s important to note that risk avoidance is usually the most expensive of all risk mitigation options.

Risk mitigation is the process of planning for disasters and having a way to lessen negative impacts. Although the principle of risk mitigation is to prepare a business for all potential risks, a proper risk mitigation plan will weigh the impact of each risk and prioritize planning around that impact.

What is the difference between avoiding a risk and accepting a risk? Avoiding a risk is changing the project plan in advance so as to eliminate specific risks from occurring while accepting a risk means no preventive action is taken; contingency plans may be used if the risk materializes.

Accepting risk, or risk acceptance, occurs when a business or individual acknowledges that the potential loss from a risk is not great enough to warrant spending money to avoid it. Also known as “risk retention,” it is an aspect of risk management commonly found in the business or investment fields.

Which best describes what is meant by “risk avoidance” in a risk management plan? Changing the project plan to eliminate a risk condition. Management reserves are established after the budget reserves are identified.

Risk avoidance is the elimination of hazards, activities and exposures that can negatively affect an organization’s assets. Whereas risk management aims to control the damages and financial consequences of threatening events, risk avoidance seeks to avoid compromising events entirely.

TL;DR Risk avoidance is not taking on the risk in the first place by not investing in the product that has the said risks. Risk transfer is akin to buying insurance. You make the investment, are exposed to the risk, but are protected if it happens.

An example of a risk that a company may be willing to retain could be damage to an outdoor metal roof over a shed. The company may instead decide to set aside funds for the eventual replacement of the shed’s roof rather than purchase an insurance policy to pay for its replacement.

Risk Reduction: An Overview. Risk avoidance and risk reduction are two strategies to manage risk. Risk avoidance deals with eliminating any exposure to risk that poses a potential loss, while risk reduction deals with reducing the likelihood and severity of a possible loss.