Which action exemplifies risk avoidance in a business context?

Risk avoidance in a business context involves taking actions to eliminate potential risks entirely. By postponing a risky project, a business is actively deciding not to engage in an activity that could lead to negative consequences or losses. This strategy allows the organization to remove itself from exposure to that specific risk, rather than merely managing or mitigating it.

In contrast, the other options involve strategies that either still accept some level of risk or focus on managing existing risks rather than avoiding them altogether. Developing new marketing strategies and increasing risk assessments after a loss may improve risk management but do not eliminate risk. Engaging in transactions without precautions indicates a disregard for risk management, which is the opposite of avoidance. Thus, postponing a risky project is the clearest example of actively choosing to avoid risk.