Which risk control technique is typically used to prevent the start of a loss before it occurs?

Which risk control technique is typically used to prevent the start of a loss before it occurs?

• A. Loss reduction
• B. Separation
• C. Loss prevention
• D. Diversification

Answer: (C)

Preventing a loss before it occurs is loss prevention. This involves proactive actions designed to stop hazards from turning into incidents—things like safety training, proper maintenance, good housekeeping, machine guarding, and enforcing safe operating procedures. The aim is to keep the initial event from happening, rather than reducing damage after it starts. Loss reduction, by contrast, focuses on limiting the severity once a loss has begun. Separation and diversification help limit overall exposure or spread risk, but they don’t prevent the initial loss from occurring. So the best answer is loss prevention.

Preventing a loss before it occurs is loss prevention. This involves proactive actions designed to stop hazards from turning into incidents—things like safety training, proper maintenance, good housekeeping, machine guarding, and enforcing safe operating procedures. The aim is to keep the initial event from happening, rather than reducing damage after it starts. Loss reduction, by contrast, focuses on limiting the severity once a loss has begun. Separation and diversification help limit overall exposure or spread risk, but they don’t prevent the initial loss from occurring. So the best answer is loss prevention.