loss exposure

Loss exposure refers to the potential risk an individual or business faces of experiencing a loss or damage that could result in financial harm. It involves identifying situations or assets that could be impacted, such as property, equipment, or liability risks. Recognizing loss exposures helps in planning and implementing measures, like insurance or safety practices, to protect against financial setbacks. Essentially, it’s about understanding where vulnerabilities exist that could lead to costly losses, so proactive steps can be taken to reduce or manage that risk effectively.