What method involves eliminating the risk altogether?

The method that involves eliminating the risk altogether is avoidance. This approach consists of taking proactive steps to either eliminate the cause of the risk or to remove the activity that generates the risk entirely. For example, if a business recognizes that a certain operation exposes it to significant liability, it may choose to stop that operation entirely, thereby eliminating the associated risk.

In contrast, reduction involves minimizing the impact or likelihood of a risk rather than eliminating it. Retention means accepting the risk and preparing to deal with its consequences if it occurs. Lastly, transferring refers to shifting the risk to another party, such as through insurance, which does not eliminate the risk but rather spreads it to another entity. This clarity on these terms helps reinforce why avoidance is indeed the method dedicated to completely eliminating risk.