What are measures aimed at reducing the likelihood that a loss will occur known as?

The term that describes measures aimed at reducing the likelihood that a loss will occur is known as risk prevention. This concept involves implementing strategies and practices designed to eliminate or minimize the chances of an event that could cause harm or financial loss. For example, safety protocols, regular maintenance of equipment, and employee training programs are all forms of risk prevention that organizations can employ to lower their exposure to potential risks.

In contrast, risk transfer refers to shifting the burden of risk to another party, such as through insurance, while risk reduction involves taking steps to lessen the potential impact of a risk that could occur. Risk retention is the practice of accepting the risk when the potential consequences are manageable or the cost of other risk management strategies is prohibitively high. Each of these concepts plays a vital role in overall risk management but specifically, risk prevention focuses on stopping risks from occurring in the first place.