Which risk management technique focuses on limiting the extent of loss that may occur?

The focus of risk management techniques is to manage potential losses and enhance decision-making related to risks. Among the options, the technique that emphasizes limiting the extent of loss is risk control. This involves implementing measures to reduce the likelihood of a risk occurring or minimizing the severity of the loss if it does occur.

Examples of risk control can include safety protocols, regular maintenance of equipment, employee training, and incorporating safety features into operations. By addressing risks proactively, organizations can effectively mitigate the impact of adverse events, thus enabling them to maintain stability and protect their assets. This technique is essential in creating a safer environment, ultimately reducing both frequency and severity of potential losses.

The other techniques mentioned, while important in their own right, have different focuses: risk sharing involves distributing the risk among multiple parties, risk transfer seeks to pass the risk to another party (often through insurance), and risk retention involves accepting the risk and planning for the consequences without external measures. Each plays a crucial role in a comprehensive risk management strategy, but they do not specifically focus on limiting the extent of loss like risk control does.