What is the difference between avoiding risk and reducing risk? What

QUESTION

What is the difference between avoiding risk and reducing risk?

What will be an ideal response?

ANSWER

Answer: Risk avoidance is the practice of avoiding risk by not participating in risky activity. Risk reduction is the practice of reducing risk by removing hazards or taking preventive measures.
Explanation: Two additional ways that businesses deal with pure risk are self-insurance and transferring the risk to an insurance company.