What is an example of risk reduction?

Installing smoke detectors is an example of risk reduction because it actively mitigates the potential damage or harm caused by a fire. By having smoke detectors in place, individuals can be alerted to the presence of smoke or fire early on, allowing for a quicker response to evacuate and address the problem. This proactive measure directly diminishes the likelihood of serious injury, loss of life, or extensive property damage resulting from a fire event.

In contrast, obtaining fire insurance represents risk transfer, as it shifts the financial burden of loss to an insurance company. Building a new structure does not inherently reduce risks associated with potential fire; it may even introduce new risks depending on materials used and construction practices. Ignoring the risks involved would allow the risks to persist without any reduction, leading to potentially severe consequences. Thus, installing smoke detectors is a clear example of actively reducing risk.