Many lease agreements include a provision that transfers liability from one party to another. Construction contracts may include a provision that one party will hold another party harmless. Risk retention can be complete or partial. Using a deductible as a way to reduce your property insurance premium is a partial retention. A decision not to buy insurance for damage caused by earthquake leaves you bearing the whole risk.
Risk control limits the impact or chance of a loss occurring.
Risk prevention may include proper equipment maintenance, fire safety programs, and employee safety plans. Risk reduction limits the severity of a loss. Loss reduction programs include wearing seat belts, fire alarms, and backup generators. In an aquaculture operation, risk control techniques are vital. A loss today affects profits as much as 36 months from now.