Risk Control

Risk control techniques include:

  • Avoidance
  • Loss Prevention
  • Loss Reduction
  • Segregation of Exposures
  • Contractual transfer of an asset or activity.


A good example of risk control, is what is happening in the construction industry in Alberta.

In 2007, there were fires that destroyed 18 duplexes and damaged 70 homes in Alberta. This has resulted in changes to fire code regulations.

New fire code regulations came into effect which include improved safety requirements on construction sites.

Building code changes include a new requirement that fire-resistant gypsum board be used in all new homes, which have vinyl siding and are built close together. The houses tend to reach very close to the end of the property line to maximize the square footage. This has caused problems where one home catches on fire and the flames leap to the house next door.

Gypsum wallboard and fire detectors will also be required in attached garages of new homes. There have been fires starting in the garage and spreading to the home that have caused this change. Multi-family buildings will require additional sprinklers. Of course, there is going to be increased costs as a result of the changes. This will be transferred to the new home buyer.

When a risk cannot be avoided, it must be controlled. Revisions to building codes is a good example of risk control loss reduction.

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