2. Determining, minimizing, and preventing accidental loss in a business, for example, by taking

safety measures and buying insurance

Risk management

Explanation:

Risk management involves early identification, assessment, and control of potential threats to an organization's profit or capital. Risk management results in the organization taking precautionary measures to curb or reduce the treats. Any investments expose the organization to potential financial losses due to threats such as legal liabilities, economic uncertainties, and natural disasters.

An organization usually takes safety measures such as insurance to manage its risks. Risk management is undertaken through four techniques, which include risk avoidance, transfer, mitigation, and risk acceptance.