What Does Risk Control Mean?
Risk control is the act of taking steps to avoid or minimize potential losses in business. This normally follows formal assessments meant to identify risks in a given workplace. Risk control methods typically result in changes to the company's operations.
Insuranceopedia Explains Risk Control
Every business endeavor faces risks, such as the threat of bankruptcy. Business owners are advised to prepare for or, better yet, reduce or avoid the risk.
One method of risk control is the purchase of commercial insurance policies. Another way is to assess potential risks and institute control measures to mitigate them. For example, if an assessor discovers a piece of unsafe machinery, management can control the risks associated with it by repairing or replacing it to ensure the safety of the employees who make use of it.