What is the action taken to minimize losses at optimal cost referred to as?

The action taken to minimize losses at optimal cost is known as risk control. This concept encompasses various strategies and measures implemented to reduce the frequency and severity of potential losses. Risk control methods can include safety training, equipment maintenance, loss prevention programs, and other proactive measures designed to mitigate risks before they result in actual loss events.

By focusing on minimizing losses, organizations can significantly improve their overall risk management strategy, ultimately leading to lower insurance premiums and reduced financial impact associated with unforeseen events. Effective risk control aligns with the organization's goals by ensuring that these methods are financially viable and contribute to the organization's bottom line.