Risk Avoidance is a risk response strategy that involves eliminating the threat or protecting the portfolio, program, or project from its impact.
It seeks to remove the source of the risk, modify project objectives, or change conditions to ensure the risk does not occur. This strategy is typically applied to high-impact threats where the cost of occurrence outweighs the cost of avoidance.
Key Characteristics
- Eliminates Exposure – Seeks to completely remove the risk or its cause
- Applied Early – Most effective during planning or before execution
- May Affect Scope or Approach – Involves trade-offs to eliminate risk pathways
- Proactive Strategy – Takes decisive action before the risk can manifest
Example Scenarios
- Changing the project location to avoid regulatory risks
- Reducing scope to remove highly complex or unstable components
- Avoiding the use of emerging technology by selecting a proven alternative
Role in Risk Response Planning
- Strengthens Risk Control – Removes critical threats before they can impact objectives
- Influences Planning Decisions – May reshape timelines, budgets, or deliverables
- Demands Stakeholder Alignment – Requires agreement when project elements are removed or altered
- Supports Risk Appetite Boundaries – Aligned with low tolerance for risk in sensitive areas
Risk Avoidance Strategy Characteristics
| Attribute | Description |
|---|---|
| Objective | Eliminate the risk entirely or remove exposure to its impact |
| Timing | Typically applied during planning or before the risk materializes |
| Impact on Scope | May involve changing scope, objectives, or approach |
| Impact on Schedule | Could require early decisions or re-sequencing of activities |
| Impact on Cost | May incur higher upfront costs to prevent future impact |
| Common Techniques | Removing risky work packages, adopting proven technology, changing vendors |
| Suitability | Used for high-impact, high-probability threats |
| Resulting Risk Level | Ideally reduced to zero or removed from consideration entirely |
See also: Risk Acceptance, Risk Enhancement, Risk Exploiting, Risk Mitigation, Risk Sharing, Risk Transference.