To accurately determine its level of risk, an organization must examine the effectiveness of its efforts to prevent losses from occurring and to reduce the severity of losses that do occur. An organization’s efforts in this area are called: A. Risk transfer. B. Risk control. C. Risk identification. D. Risk retention.
B. Risk control.
The answer is B. Risk control.
Risk control encompasses all the activities and measures taken by an organization to prevent losses from occurring or reduce their severity. These activities may include implementing safety programs, performing regular maintenance, conducting employee training, and implementing policies and procedures to minimize risk exposure. By examining the effectiveness of their risk control efforts, organizations can accurately identify and assess their level of risk, and take steps to mitigate it accordingly.
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