mitigation of loss

Mitigation of loss refers to the steps taken to reduce or minimize the negative effects of a loss or potential loss. In practical terms, it means implementing actions to lessen the impact of a bad situation, such as a financial loss or damage. For example, if a business experiences a decline in sales, it might cut costs or find new markets to improve its situation. The idea is to act quickly and reasonably to limit damages rather than simply accepting them, thereby protecting assets and ensuring future stability.