A company is aware of a given security risk related to a specific market segment. The business chooses not to accept responsibility and target their services to a different market segment. Which of the following describes this risk management strategy?

The correct answer is Avoid. Risk avoidance is a strategy where an organization eliminates or withdraws from the activities or conditions that give rise to the risk. In this scenario, the company avoids the security risk by choosing not to operate in the market segment where the risk exists. Exemption is not a standard risk management term in this context. Exception refers to a deviation from a policy or rule, not a strategy for managing an inherent risk. Transfer would involve shifting the risk to a third party, such as through insurance or outsourcing, which is not what the company did here; they eliminated the exposure entirely.