Risk Control Tools Once specific risk factors have been identified, classified, and evaluated; a process must be chosen to manage this risk. There are two major alternatives, each of them offering its own tools, which are often combined. It all depends on the level of risk exposure the customer wants. The alternatives are:
- Risk Control: Minimizes exposure to losses.
- Total Rejection: Does not accept any exposure to risk – not even temporary.
- Reduction: Uses any and all measures (except rejection) designed to reduce the frequency and severity of losses. These measures are also classified as loss prevention and loss control.