Transportation Operations LINCS Practice Exam

Which risk management strategy is aimed at preventing negative outcomes altogether?

1. Mitigation

2. Avoidance

3. Acceptance

4. Transfer

The correct answer is: Avoidance

The strategy of avoidance is focused on eliminating risks entirely, thereby preventing any potential negative outcomes from occurring. This approach involves identifying activities or situations that could lead to adverse events and making conscious decisions to steer clear of those risks altogether. For example, a transportation company might decide not to operate in areas prone to severe weather conditions, thus avoiding the risks associated with those environmental factors. In contrast, mitigation involves reducing the impact or likelihood of risks rather than eliminating them outright. Acceptance acknowledges that some risks are unavoidable and may be tolerated as part of normal operations, while transfer involves shifting the responsibility or financial burden of a risk to another party, such as through insurance. Each of these strategies serves a purpose in a comprehensive risk management plan, but avoidance is distinct in its goal to completely eliminate the chance of negative outcomes.