why is it important to be able to balance risk management versus risk avoidance in order to be successful?

Answer 1

I assume this is a business question. If not, I have no idea how to answer. Every business must involve taking risks. If you don't take the risk of opening the store or building the factory or buying the hot dog push cart, you won't be in business in the first place. Generally, a business cannot be successful unless its managers decide what risks to take and make decisions about how to minimize those risks. At the same time, attention must be paid to avoiding all risks that are not intentionally assumed. Manages buy insurance against some risks, completly avoid some risky activities, educate the employees about how to do their jobs without risk and choose to face other risks. Knowing which risks to avoid and which to assume is a basic part of a manager's job.