What best describes the 'Avoid' option in AI risk response?

• A. Launch a new initiative
• B. Accept all risk
• C. Do not pursue an action because risk cannot be brought within limits
• D. Outsource the project to a vendor

Answer: (C)

Avoiding a risk means choosing not to pursue an action at all because the risk cannot be reduced to an acceptable level. In AI risk management, if a project or feature creates potential harms, regulatory issues, or ethical concerns that cannot be mitigated to an acceptable threshold, the best move is to discontinue or not start that activity. This eliminates the exposure entirely rather than trying to reduce it, transfer it, or accept it. For example, if a proposed AI system could lead to severe privacy violations and no safeguards can bring that risk within acceptable bounds, you would avoid proceeding with the project. The other options describe actions that proceed with the project, accept the risk as is, or shift some risk to another party, rather than eliminating the risk altogether.