Which strategy for addressing a disruption entails risk controls and plans to reduce, minimize, or divert any loss?

Which strategy for addressing a disruption entails risk controls and plans to reduce, minimize, or divert any loss?

• A. Loss mitigation
• B. An insurance policy
• C. Transfer processing
• D. Contingency model

Answer: (A)

Loss mitigation focuses on putting risk controls in place and developing plans to reduce, minimize, or divert losses from a disruption. It involves preventive measures and a business continuity approach—like securing facilities, implementing backups and redundancy, training staff, and preparing alternate workflows and tested response plans—so the severity or duration of a loss is lessened. This is distinctly proactive and internal, aiming to prevent or lessen harm rather than simply paying for damages. Insurance, by contrast, shifts financial risk to an insurer and doesn’t reduce the loss itself. The other terms described aren’t about implementing internal controls and planned actions to minimize disruption.

Loss mitigation focuses on putting risk controls in place and developing plans to reduce, minimize, or divert losses from a disruption. It involves preventive measures and a business continuity approach—like securing facilities, implementing backups and redundancy, training staff, and preparing alternate workflows and tested response plans—so the severity or duration of a loss is lessened. This is distinctly proactive and internal, aiming to prevent or lessen harm rather than simply paying for damages. Insurance, by contrast, shifts financial risk to an insurer and doesn’t reduce the loss itself. The other terms described aren’t about implementing internal controls and planned actions to minimize disruption.