Loss control is an important method in handling risk. What are its major objectives? Describe them briefly.

Loss control is an important method for handling risk. It has two major objects: (a) Loss prevention Loss prevention aims at reducing the probability of loss so that frequency of losses are reduced, e.g. if you follow good health habits, watch your weight and give up smoking, the chances of heart attacks are minimized. Loss prevention is important for business of the enterprises as loss frequency can be reduced by enforcement of strong safety measures. (b) Loss reduction Loss reduction involves reduction in severity of loss. This can be achieved by installing sprinkler system in a warehouse which would help in speedy extinguishment of fire, installing perfect partition wall between two highly inflammable commodities, practicing segregation and construction of fire resistant materials to minimize losses.