A proactive approach to loss reduction is known as?

A proactive approach to loss reduction is best referred to as risk control. This concept encompasses strategies that organizations implement to minimize the likelihood of losses before they occur. It involves identifying potential risks, analyzing them, and taking corrective measures such as training employees, maintaining equipment, or creating safety protocols. By focusing on prevention rather than simply reacting to issues after they arise, businesses can significantly lower their exposure to claims and losses.

In contrast, loss forecasting involves predicting future losses based on historical data and trends, which is more of a reactive process rather than one focused on preventing risks. Claims management refers to handling claims after losses have occurred, ensuring that the processes associated with them are smooth and efficient. Financial risk assessment is concerned with evaluating potential financial losses and their impacts, but it does not necessarily delve into concrete, proactive measures aimed at loss reduction. Thus, risk control stands out as the primary strategy focused on proactively managing and mitigating risks before they translate into actual losses.