What strategy involves implementing standards to minimize or eliminate risks?

The strategy that involves implementing standards to minimize or eliminate risks is known as risk control. Risk control encompasses a variety of practices and procedures aimed at reducing the potential impact of identified risks, whether they are operational, financial, regulatory, or otherwise. This may involve creating policies, procedures, and standards to effectively manage risks, which ultimately contributes to a safer and more reliable operation.

By focusing on risk control, organizations can proactively identify potential issues and implement appropriate measures to mitigate them before they escalate. This means that risk control is an essential part of any comprehensive risk management framework, as it not only aims to protect the organization but also helps in fostering a culture of risk awareness.

The other mentioned options do not represent strategies specifically focused on the direct implementation of standards to manage risks. For instance, risk appetite refers to the level of risk that an organization is willing to accept in pursuit of its objectives, while run-off cover pertains to insurance coverage that is provided after a policy ends, and vicarious liability relates to holding one party responsible for the negligent actions of another. Each of these concepts plays a role in the larger discipline of risk management, but they do not specifically involve the proactive implementation of standards aimed at minimizing or eliminating risks.