Loss control in risk management is primarily intended to do what?

• A. Increase risk exposure
• B. Reduce frequency and severity of losses
• C. Have no impact on risk
• D. Only affect premiums

Answer: (B)

Loss control is about actively reducing the chances of incidents happening and limiting how bad their consequences can be. By using safety programs, preventive maintenance, engineering controls, training, and sound procedures, you lower how often losses occur (frequency) and how large each loss can be (severity). Together, these actions shrink the organization’s overall risk exposure and the expected cost of losses. Insurance premiums can be influenced by improved loss experience, but that outcome stems from a lower risk, not the primary aim. The other options miss the point: increasing risk exposure would worsen risk, having no impact on risk is incorrect because these controls change risk, and focusing only on premiums ignores the core goal of actually reducing losses.