What strategy entails changing business practices to eliminate potential risks?

The strategy that involves changing business practices to eliminate potential risks is known as risk avoidance. This approach seeks to identify potential threats and proactively adjust processes or remove activities that could lead to risk exposure. By altering operations or implementing alternative methods, organizations can prevent risks from manifesting and protect their assets, reputation, and overall functioning.

In contrast to other strategies like risk mitigation, which involves reducing the impact or likelihood of risks, or risk transference, where the responsibility for the risk is shifted to another party (such as through insurance), risk avoidance aims for a more comprehensive elimination of risk factors. Behavioral analytics, while useful in understanding risks through data-driven insights, does not inherently change business practices. Thus, identifying risk avoidance as the correct strategy highlights the proactive stance organizations can adopt to safeguard against potential threats.