The correct answer is B. Loss prevention.
Loss prevention is a set of measures taken to reduce the likelihood of loss or damage to an asset. It can be achieved through a variety of methods, such as physical security measures, employee training, and risk assessment.
Risk retention is the decision to keep the risk of loss or damage to an asset. This can be done by self-insuring or by taking out a deductible on an insurance policy.
Risk transfer is the transfer of the risk of loss or damage to an asset to another party. This can be done through insurance, hedging, or other financial instruments.
Risk avoidance is the decision to not take on a risk in the first place. This can be done by not investing in certain assets, by not entering into certain contracts, or by taking other steps to avoid exposure to risk.
Here are some examples of loss prevention measures:
- Installing security cameras and alarms
- Training employees on security procedures
- Conducting regular risk assessments
- Maintaining a safe working environment
- Ensuring that all assets are properly insured
Loss prevention is an important part of risk management. By taking steps to reduce the likelihood of loss, businesses can protect themselves from financial losses and other consequences.