Certified Fraud Examiner Practice

Avoiding risk through elimination involves taking proactive measures to address potential risks before they can affect a project. This entails removing the underlying cause of the risk entirely, which prevents the risk from manifesting in the first place. By doing so, organizations can ensure that certain negative outcomes are no longer a possibility. This approach contrasts with other methods of risk management, such as taking actions after risks have been identified, which does not prevent the risk from initially impacting the project. Deferring project decisions allows risks to persist in the interim without resolution, potentially leading to complications later on. Additionally, outsourcing tasks typically transfers the risk to a third party rather than eliminating the risk itself. By focusing on the preemptive removal of risk causes, organizations can effectively safeguard their projects and resources.