What does "loss control" mean in risk management?

In risk management, "loss control" specifically refers to strategies and practices that are designed to minimize both the frequency and severity of potential losses. This encompasses a variety of techniques and measures that organizations implement to reduce the likelihood of loss occurrences and mitigate the impact when losses do happen.

For instance, loss control may involve implementing safety protocols to prevent workplace accidents, conducting regular maintenance checks to avoid equipment failures, or training employees on risk-awareness to curb potential hazardous situations. By focusing on both aspects—frequency (how often losses occur) and severity (the potential impact of these losses)—organizations can develop a comprehensive approach to protecting their assets and ensuring operational continuity.

While minimizing risk for corporate assets or avoiding legal claims is important in risk management, they do not encompass the entirety of what loss control entails. Lowering insurance premiums is often a secondary benefit that can arise from effective loss control practices, but it is not the primary purpose or definition of loss control itself.