Which of the following represents a risk management strategy?

Engaging in risk transfer through insurance is a sound risk management strategy because it allows an organization to allocate the financial consequences of certain risks to the insurance provider. This means that rather than bearing the full burden of potential losses, the organization can safeguard itself against unexpected events by paying for insurance coverage. This approach not only helps to stabilize the financial aspect of risk but also allows the organization to focus resources on other important areas while knowing that they have a safety net in place.

The other options do not effectively represent prudent risk management strategies. Assuming that all risks will be managed effectively can lead to complacency and a false sense of security. Avoiding all hazardous activities entirely is impractical, as some level of risk is inherent in almost every operational aspect and eliminating all risks would likely hinder the organization's ability to function. Implementing outdated safety practices can expose the organization to unnecessary risks, as modern standards and practices generally provide better protection and adaptability to new challenges.