An example of exposure avoidance in a community association is?

• A. Avoiding physical security improvements
• B. Prohibiting alcohol in the clubhouse
• C. Purchasing extra equipment
• D. Implementing routine maintenance software

Answer: (B)

Exposure avoidance means removing a risk by not engaging in the activity that creates it. Prohibiting alcohol in the clubhouse eliminates the possibility of alcohol-related incidents on the property, such as injuries, disturbances, liability claims, or underage drinking, because that exposure simply isn’t present when alcohol isn’t allowed. The other options don’t remove the risk: avoiding security improvements leaves potential threats unaddressed, while purchasing equipment or software helps manage or mitigate risk but doesn’t eliminate the exposure itself.