Loss Management

DEFINITION of 'Loss Management'

A business practice that seeks to detect, identify, investigate and prevent events that cause a drop in value of any of an organization's revenues, assets and services. Loss-management improvements may involve changes in a business's operating policies and business model in order to limit instances of accidental and/or intentional loss.

BREAKING DOWN 'Loss Management'

For example, both intentional theft of company property and accidental damage to products as a result of faulty machinery constitute sources of loss that would be the responsibility of loss management. Company representatives may work alongside consultants and members of the insurance industry to improve a business's loss-management practices.