Which of the following is an example of avoidance in risk management?

Avoidance in risk management refers to strategies that completely eliminate the risk of loss. In this context, choosing not to ride on airplanes to avoid crashes exemplifies avoidance, as it is a proactive decision to entirely sidestep the risk associated with air travel. This means the individual has made a conscious choice to avoid a situation that could potentially result in injury or loss.

Using co-payments for healthcare, establishing a risk retention group, and purchasing insurance for all potential losses are not avoidance strategies. Instead, they represent methods of risk management that deal with the risk in alternative ways, such as sharing costs, pooling resources, or transferring financial risk through insurance. These strategies address risks rather than eliminate them.