HSE HUB › Question of the Day archive › 25 August 2026
CSP practice question: Risk Treatment Strategies
Question of the Day for Tuesday, 25 August 2026
CSP · Risk Management
Answer in HSE HUB Pro
From a total-cost-of-risk perspective, why can spending more on loss prevention sometimes lower overall cost?
APrevention spending is always fully reimbursed by the insurance carrier, so it is effectively free money
BPrevention spending raises premiums, which is desirable because higher premiums signal a safer firm
CPrevention spending has no effect on losses, but it improves the appearance of the annual safety report
DReducing loss frequency and severity decreases retained losses, claims, and premiums, offsetting the prevention spend
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