Which of the following is true about risk prevention measures?

Risk prevention measures are specifically designed to decrease the likelihood of a loss occurring. This is accomplished through various strategies and practices that aim to identify and mitigate potential risks before they result in an actual loss. For example, implementing safety protocols in the workplace or using security systems to prevent theft are proactive steps taken to lower the chances of negative events happening.

While some measures may also reduce the severity of a loss if it does occur, their primary objective is to prevent the loss in the first place. Additionally, risk prevention cannot entirely eliminate the possibility of risk, as risks can never be completely avoided; they can only be managed or minimized. The financial status of a company may influence the resources available for risk prevention but is not a defining feature of what these measures entail.