Which two techniques are included in the risk management program for treating and loss exposures?

Which two techniques are included in the risk management program for treating and loss exposures?

• A. Risk control and risk financing
• B. Risk assessment and risk communication
• C. Risk transfer and risk reduction
• D. Hazard analysis and incident reporting

Answer: (A)

Treating loss exposures means choosing actions that either reduce how often losses occur or how severe they are, and finding ways to fund losses when they do happen. The two techniques that fit this purpose are risk control (measures to prevent losses or lessen their impact) and risk financing (methods to pay for losses, such as insurance or retention). Together, they cover both preventing losses and ensuring there are funds to cover them when they occur. Other options focus on identifying risks or on safety activities rather than the treatment methods themselves. Risk assessment and risk communication deal with recognizing and conveying risk, while hazard analysis and incident reporting are about safety analysis and tracking incidents, not the treatment tools used to handle loss exposures.

Treating loss exposures means choosing actions that either reduce how often losses occur or how severe they are, and finding ways to fund losses when they do happen. The two techniques that fit this purpose are risk control (measures to prevent losses or lessen their impact) and risk financing (methods to pay for losses, such as insurance or retention). Together, they cover both preventing losses and ensuring there are funds to cover them when they occur.

Other options focus on identifying risks or on safety activities rather than the treatment methods themselves. Risk assessment and risk communication deal with recognizing and conveying risk, while hazard analysis and incident reporting are about safety analysis and tracking incidents, not the treatment tools used to handle loss exposures.