Loss Mitigation

Loss mitigation refers to strategies and actions taken to reduce potential losses in various contexts, such as finance, insurance, or risk management. It involves identifying risks and implementing measures to minimize negative impacts. For example, in finance, lenders may offer options like loan modifications or payment plans to help borrowers avoid foreclosure. In insurance, it could mean taking steps to prevent damage to property. Essentially, loss mitigation focuses on proactively managing risks to protect assets and financial health, ensuring that the effects of unforeseen events are less severe.