What does loss control/reduction aim to achieve?

Loss control or reduction is an essential aspect of risk management aimed primarily at preventing or mitigating the impact of losses. This approach involves implementing strategies and practices that reduce the frequency and severity of potential losses, thereby protecting individuals and businesses from unexpected financial setbacks.

By focusing on prevention, loss control helps organizations identify hazards, assess risks, and apply measures that can lead to safer operations. Such measures can include safety training, improved building maintenance, and emergency preparedness plans. The ultimate goal is to minimize the occurrence of issues that would lead to claims being made against insurance policies.

The other options do not align with the primary purpose of loss control. Increasing overall insurance costs would be counterproductive, as effective loss control typically leads to lower premiums by reducing the risk profile of an entity. Enhancing speculative risks is not a goal of loss control, which is dedicated to minimizing risks rather than encouraging them. Lastly, eliminating all insurance policies would be unrealistic and counter to the purpose of risk management, as insurance serves to protect against financial losses that cannot be entirely prevented. Thus, the focus of loss control is fundamentally on preventing or reducing losses, making that the correct answer.