Final answer:
Outsourcing critical components is not a risk avoidance strategy as it can introduce new risks and dependencies, unlike contractual agreements, diversification of suppliers, and hedging financial risks, which are strategies used to mitigate risks.
Step-by-step explanation:
Out of the options provided, the tactic that is NOT a risk avoidance strategy commonly employed by buyers is outsourcing critical components. Contractual agreements, diversification of suppliers, and hedging financial risks are all approaches that help to mitigate risks. In contrast, outsourcing critical components often introduces reliance on externals, thereby potentially increasing risk rather than avoiding it.
Diversification is highly recommended in the context of investment and purchasing. It involves obtaining goods, services, or securities from a wide range of sources to reduce the likelihood of a significant negative impact from the failure of any single source. Hedging financial risks can be exemplified by using financial instruments to protect against price changes. Contractual agreements offer a formalization of terms, which can include clauses designed to reduce risk.
However, outsourcing critical components can lead to new risks such as loss of control, increased dependency, and potential for quality issues. As a result, this option does not align with the goal of risk avoidance and is, therefore, the correct answer to the question on tactics that are not risk avoidance strategies employed by buyers.