Multiple choice

Taking precautionary measures to reduce the likelihood of a loss is known as

  1. risk reduction

  2. risk retention

  3. loss control

  4. Both (1) and (3)
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Taking precautionary measures to reduce the likelihood of a loss, or to reduce the severity of a possible loss, e.g. installing a security system is known as risk reduction, which is also known as loss control. It is the measures to reduce the frequency or severity of losses and may include engineering, fire protection, safety inspections, or claims management.

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