Usually the risk manager and his or her supervisor will agree on a set of objectives relative to the risk manager's job and the risk management program and, at least yearly, evaluate both relative to stated objectives. Also an external evaluation by a risk management consultant might be in order periodically. Self-insurance involves risk assumption. Leasing is an example of risk assumption. When a chance of loss is great and severity is great, insurance is the best approach to the risk management problem.
Fire sprinklers are an example of loss reduction.
Loss reduction and loss prevention are not the same thing. Risk avoidance and loss prevention are the same thing. Book value is the best measure of a direct property loss. The damage caused by an indirect loss can be greater in amount than the damage caused by direct loss in the same occurence. OSHA is a federal loss prevention law.