Risk Control

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DEFINITION of 'Risk Control'

The method by which firms evaluate potential losses and take action to reduce or eliminate such threats. Risk control is a technique that utilizes findings from risk assessments (identifying potential risk factors in a firm's operations, such as technical and non-technical aspects of the business, financial policies, and other policies that may impact the well-being of the firm), and implementing changes to reduce risk in these areas.

BREAKING DOWN 'Risk Control'

Risk control takes that information gained during risk assessments and develops and applies changes to control the risks. Risk control can involve the implementation of new polices and standards, physical changes and procedural changes that can reduce or eliminate certain risks within the business. Risk control is an important action taken by firms that is intended to proactively identify, manage and reduce or eliminate risks.

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