Which strategy involves reducing the frequency or severity of losses?

The strategy that involves reducing the frequency or severity of losses is loss control. This approach encompasses various techniques aimed at minimizing the potential risks that an organization may face. Loss control can include a range of activities such as implementing safety protocols, conducting training programs, and engaging in preventive maintenance. By focusing on these aspects, organizations can significantly lower the likelihood of adverse events and their impact when they do occur.

This strategy differs from others in that it does not seek to eliminate risks entirely, as avoidance would do, nor does it involve accepting risks as in risk assumption. Legal enforcement relates more to compliance and regulations rather than actively managing risks, therefore it also does not fall under the category of reducing loss frequency or severity. Overall, loss control is critical for managing risk effectively in any organization, allowing for a more sustainable operation by mitigating potential losses.