Final answer:
Mary's choice to not fly is an example of risk avoidance, a decision to eliminate any negative outcomes by not taking part in the risk-related activity.
Step-by-step explanation:
Mary's refusal to fly on a commercial airplane for her business can be categorized as an example of risk avoidance.
This strategy involves eliminating any possibility of negative outcomes associated with a risk by not engaging in the activity that leads to the risk. It is a type of proactive management whereby potential risks are identified and actions are taken to remove the risk entirely.
Risk avoidance is much like purchasing insurance to mitigate low-probability but potentially devastating events. For Mary, avoiding flight may prevent her from experiencing fear, anxiety, or other negative consequences she associates with flying.
However, this decision may also impact her business since she is limiting personal interactions with clients that might require travel by air.
Choices like Mary's often involve what is known as asymmetric risk, where the consequences of a bad outcome (such as being involved in a plane crash, even though the probability is low) are perceived to be so severe that any potential benefits are overlooked.
In business and life, weighing these kinds of risks against potential rewards is an essential component of decision-making.