Which scenario was cited as a prototypical example of risk avoidance?

• A. The obsolescence of legacy computing systems
• B. A major cyberattack
• C. A minor software bug
• D. A market downturn

Answer: (A)

Risk avoidance means choosing not to engage in activities that would expose the organization to risk. Retiring or replacing legacy computing systems fits this because it prevents the specific risks tied to old tech—security vulnerabilities, vendor support gaps, and compatibility problems—by eliminating the use of those systems altogether. In contrast, a major cyberattack is a realized threat requiring mitigation or resilience measures; a minor software bug is a small issue typically addressed directly; and a market downturn is an external business risk managed through strategies like diversification or hedging rather than avoidance.