What is the method called that aims to eliminate the chance of liability by avoiding certain activities?

The method known as avoidance is a risk management strategy that focuses on eliminating potential liabilities by steering clear of certain activities or situations that could lead to risk exposure. By effectively avoiding these activities, individuals or organizations can prevent the occurrence of incidents that may result in legal claims or financial losses.

For example, if a real estate company identifies that a specific type of investment poses a significant risk, they may choose not to engage in that investment at all. This preemptive approach helps ensure that they don't face any associated liabilities that would otherwise arise from those high-risk activities.

This strategy is contrasted with other risk management methods, such as retention, which involves accepting the risk and its potential consequences; reduction, where measures are taken to lessen the likelihood or impact of risk; and transfer, which typically involves transferring the risk to another party through insurance or contracts. Therefore, avoidance is a proactive approach to managing risks by completely steering clear of them.