Risk Topics – Risk Control Tools

Risk Topics
The risk an individual faces may be a combination of various factors: the risk of death and accidents, the threat of natural disasters, and market volatility. In terms of personal well being, some risks may affect life expectancy and result in temporary or permanent disabilities.
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.