Which of these is a method of risk control that aims to minimize the frequency and severity of losses?

Risk control methods are strategies used to minimize both the frequency and severity of losses that may occur in an organization or individual’s activities. The most relevant method among the choices provided is reduction.

Reduction involves implementing measures that actively decrease the likelihood of losses happening and mitigate their impact when they do occur. This can include safety training, maintenance programs, or installing security systems. By making these adjustments, individuals and organizations can better protect themselves against potential risks, leading to fewer incidents and less intense consequences if an event does occur.

In contrast, avoidance refers to eliminating exposure to a risk altogether, which is not feasible for all risks, while retention means accepting the risk and potentially bearing the financial consequences. Exclusion typically involves policies that specifically omit certain risks from coverage rather than actively controlling the risk. Thus, reduction stands out as the most effective strategy for addressing and managing risks proactively.