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Foundations of Casualty Actuarial Science

(iii) Select the risk management alternatives to best
handle the exposures

(iv) Implement the selected alternative.
(v) Monitor the alternatives put into practice to see if

they are working as expected.

Q9. What is risk control? Explain the various
techniques of risk control.

Ans. Risk control is " any conscious action intended to reduce
the frequency, severity, or unpredictability of accidental
losses ". Risk control deals with the actual risk/peril or
danger, not on the money required to restore or
compensate, which are handled through risk financing
techniques.

There are several techniques of risk control. They are :
(i) Exposure avoidance - An exposure may be

avoided altogether by never undertaking, or
abandoning, an activity or asset that has an
exposure to possible loss. This reduces the
probability of loss arising completely. Exposure
avoidance has limited application as they are not

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