What term describes a management approach that aims to minimize adverse effects of risks?

Risk control refers to a management approach that focuses on identifying and minimizing the negative effects associated with various risks. This method encompasses a range of techniques and strategies designed to mitigate potential harm, whether it be physical, financial, or reputational, that organizations may face in their operations.

Implementing effective risk control measures is essential as it involves systematic processes that evaluate risk exposure and determine appropriate actions to minimize risk outcomes. Common practices within risk control may include risk avoidance, risk reduction, risk sharing, and risk retention. By actively managing risks, organizations can protect their assets, reduce liabilities, enhance safety, and improve overall decision-making.

The other options, while related to legal and ethical concepts, do not directly pertain to the management strategies used to mitigate risks. Vicarious liability deals with a legal principle where one party can be held liable for the actions of another, unconscionable conduct refers to unethical behavior in contractual agreements, and retroactive cover typically relates to insurance policies and their start dates rather than an overarching management approach. Thus, the term risk control distinctly aligns with the approach aimed at minimizing adverse effects of risks.