What is the primary outcome of loss control in risk management?

The primary outcome of loss control in risk management is to reduce the probability of risk occurring. This process involves implementing strategies and measures designed to mitigate potential losses and enhance safety. By focusing on loss control, organizations can identify potential hazards, assess their impact, and develop systems to minimize the likelihood of those risks manifesting.

This approach not only aims to prevent accidents and losses from occurring in the first place but also to create a safer environment for employees and stakeholders. Techniques might include employee training, safety protocols, inspections, and the use of technology to monitor risks. The goal is to create a proactive risk management strategy that effectively decreases the chances of incidents, consequently leading to lower costs and improved operational efficiency.

The other options are related to risk management strategies but do not directly align with the primary focus of loss control. While complete elimination of risk might be an ideal goal, it is often impractical. Transferring risk to an insurance company is a financial strategy that shifts the potential cost rather than reducing risk itself. Diversifying investment options pertains to investment management and does not address the specific aim of loss control, which is the prevention of risks and losses.