An organization has decided to move its information-processing facilities to a place where the risk of flooding is low. What option of risk treatment is this?

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The decision to relocate information-processing facilities to an area with a lower risk of flooding exemplifies the strategy of risk avoidance. This approach involves taking proactive measures to eliminate the risk by altering the environment or circumstances that allow the risk to materialize. By moving to a location less prone to flooding, the organization is effectively removing the threat that flooding poses to its information-processing capabilities.

In this context, risk avoidance prioritizes preventive actions to protect critical data and systems. It involves changing plans or processes to sidestep risks instead of merely responding to them after they occur. This strategic decision indicates that the organization values the continuity and safety of its operations and takes significant steps to mitigate potential risks before they can negatively impact its systems.

In contrast to risk evaluation, where risks are assessed to determine their potential impact and likelihood, or risk sharing, which involves distributing the risk among other parties (such as through insurance), risk acceptance implies that the organization recognizes the risk but chooses to proceed without changes, accepting any potential consequences. Therefore, the move signifies an active decision to eliminate, rather than simply manage or accept, the risk of flooding.

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