Which method for handling risk involves getting rid of the risk entirely?

Avoidance is indeed the method for handling risk that involves eliminating the risk entirely. This approach focuses on identifying potential risks and taking proactive steps to ensure they do not occur. By choosing not to engage in activities or situations that could give rise to a risk, an organization effectively removes the threat altogether.

For instance, a company might decide not to enter a market with a high potential for litigation or liability, thereby avoiding the risks associated with that market. This can also include actions such as discontinuing a particular product line that has a high risk of failure or adverse reactions.

In contrast, other methods such as control, transfer, and retention do not eliminate risk completely. Control involves implementing measures to reduce the likelihood or impact of a risk, transfer shifts the risk to another party (such as through insurance), and retention means accepting the risk as a part of the business operations, often reserving the ability to manage it financially if it materializes. Therefore, the essence of avoidance is in its fundamental goal of completely sidestepping the risk rather than managing, sharing, or facing it directly.