MANAGEMENT

Detailed explanation-1: -Risk can be reduced in 2 ways-through loss prevention and control. Examples of risk reduction are medical care, fire departments, night security guards, sprinkler systems, burglar alarms-attempts to deal with risk by preventing the loss or reducing the chance that it will occur.

Detailed explanation-2: -Risk avoidance means you’re trying to avoid compromising events as a way to eliminate liability exposures. Risk reduction is a way to help you control the damages to your business, like claims or losses. Learn more about risk avoidance versus risk reduction and how you can use both as part of your risk management plan.

Detailed explanation-3: -Risk-retention is the method secured for all other types of risks, that is, unforeseen or foreseen but not significant. For example, risk of getting a flat tyre while on a long road trip. Although the risk is unknown, it is not as significant and you can easily manage it out of your pocket.