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abandoning, an activity or asset that has an exposure to
possible loss.

38. Loss Prevention
Loss prevention reduces, but does not completely
eliminate, the probability, or frequency, of a loss.

39. Loss Reduction
Loss reduction reduces the size, or severity, of losses
that occur. Loss reduction measures fall into pre-loss
and post-loss categories.

40. Segregation of Exposure Units
The purpose of segregation of exposure units is to reduce
the size of any one loss by dividing up an entity's exposure
into smaller pieces. There are two main types; separation
and combination.

41. Contractual Transfer to a Non-Insurer
The final risk control alternative is transferring exposure
to possible loss to a non-insurer through a contractual
arrangement.

42. Risk financing is any technique used to obtain funds to
restore losses that strike an individual or entity. These
techniques fall into three general categories: risk

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