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Difficulty: MediumMethods of Handling Risk

A residential roofing contractor has historically provided both standard roof replacements and emergency tarping services during severe storms. Recognizing that the emergency tarping work performed in high winds has led to a disproportionate number of severe worker falls, the owner decides to permanently discontinue the emergency tarping service, restricting the business to scheduled replacements in safe weather only. Which method of risk handling does this decision illustrate?

  1. Risk avoidanceAnswer
  2. B
    Risk reduction
  3. C
    Risk transfer
  4. D
    Risk retention

Answer

Risk avoidance
Risk avoidance involves eliminating a hazard entirely by choosing not to engage in the activity that gives rise to the risk. By permanently discontinuing the dangerous emergency tarping service, the contractor has completely avoided the specific exposure to high-wind falls.

Step-by-Step Solution

1
Analyze the specific risk exposure faced by the business.
The exposure is the high risk of severe worker falls during emergency tarping in high winds.
Identifying the exact nature of the risk is required to evaluate how it is being managed.
2
Examine the action taken by the business owner to address this exposure.
The owner decided to permanently discontinue the emergency tarping service.
The action taken determines which of the STARR (Sharing, Transfer, Avoidance, Reduction, Retention) methods is being used.
3
Match the action to the corresponding risk handling definition.
Because the activity causing the exposure was completely eliminated, the method used is risk avoidance.
Risk avoidance requires ceasing or never undertaking the activity that creates the risk, distinguishing it from methods that merely mitigate or finance the risk.

Key Concept

Methods of Handling Risk (STARR)
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Topics

Methods of Handling Risk

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