Certified Public Procurement Officer (CPPO) Practice Test 2025 - Free CPPO Practice Questions and Study Guide

Loss control is a critical aspect of risk management focused specifically on reducing the impact of potential losses. It involves implementing strategies and measures that help to mitigate risks and lessen their consequences should they occur. This can include safety training, maintenance programs, and system redundancies designed to prevent losses from happening or to minimize their severity.

By actively managing and controlling potential hazards, organizations can protect their assets, reduce liabilities, and create a safer environment. As a proactive approach, loss control not only addresses risks but also fosters a culture of safety and preparedness, ultimately contributing to the resilience of the organization.

The other elements mentioned in the options serve different purposes in risk management: risk avoidance aims to eliminate the risk altogether, transfer of risk involves shifting the financial burden of risks to another party (like purchasing insurance), and acceptance of risk means acknowledging that the risk exists and being prepared to handle the consequences without taking preventive actions. Each of these plays a role in an overall risk management strategy, but loss control specifically targets minimizing the impact of risks that are anticipated or unavoidable.