Loss Control Tools Techniques

Question 1

When would you use a cost containment technique

Answer 1

Cost containment techniques are concerned with activites for minimising costs following a business disruption

Question 2

What’s loss containment mean

Answer 2

Loss containment is about acting fast and smart to limit the damage, protect resources, and recover faster.

In business or IT, it might look like:
• Shutting down part of a system when a hacker breaks in, so they can’t access more data.
• Pulling a defective product from shelves quickly to avoid lawsuits or injuries.
• Fixing a financial mistake before it drains more money.

Question 3

What’s loss prevention

Answer 3

So, loss prevention = stopping loss before it happens.

In business or IT, it might look like:
• Shutting down part of a system when a hacker breaks in, so they can’t access more data.
• Pulling a defective product from shelves quickly to avoid lawsuits or injuries.
• Fixing a financial mistake before it drains more money.

Question 4

What’s damage limitation

Answer 4

Damage limitation means trying to reduce the harm after something bad has already happened.

In plain English: It’s about making a bad situation “less bad.”

If a company has a data breach, damage limitation would be quickly warning customers, fixing the issue, and preventing it from spreading.
•	If a car crashes into a store window, putting up a temporary barrier and cleaning up the mess is damage limitation.
•	If someone says something offensive publicly, apologizing quickly and clearly can help limit the damage to their reputation

Question 5

What’s difference between loss prevention and damage limitation

Answer 5

So, loss prevention is about stopping problems before they happen, while damage limitation is about handling them smartly after they happen.

Question 6

When would you use a crisis comms plan

Answer 6

Crisis comms plan is used to minimise any loss or damage to reputation following an incident