Which of the following is an example of risk avoidance?

Risk avoidance involves taking proactive measures to eliminate or completely avoid exposure to potential risks. In this context, the example of not participating in high-risk activities effectively illustrates risk avoidance because it is a direct choice to stay away from situations that could lead to harm or loss.

By choosing not to engage in high-risk activities, an individual or organization effectively removes the possibility of experiencing negative outcomes associated with those risks. This approach prioritizes safety and stability by steering clear of dangers rather than attempting to manage or mitigate them after they occur.

The other options represent different strategies related to risk management. Maintaining a diverse portfolio of investments is an example of risk reduction, as it spreads out exposure to mitigate losses. Purchasing insurance is a method of risk transfer, where the financial burden of a potential loss is shifted to another party. Implementing safety training programs is a way to manage risk by reducing the likelihood and consequences of accidents but does not eliminate the risk entirely.

Therefore, not participating in high-risk activities is the clear example of risk avoidance.