In risk management, what strategy involves learning from past experiences to minimize hazards?

The strategy that involves learning from past experiences to minimize hazards is loss prevention. This approach focuses on identifying and mitigating risks through effective measures based on historical data and previous incidents. By analyzing what has occurred in the past, organizations can implement processes and actions designed to decrease the likelihood of similar risks arising again in the future.

Loss prevention encompasses a proactive mindset where organizations strive to understand the root causes of past losses and actively work to address these issues, thus reducing potential future hazards. This could involve enhancing safety protocols, providing additional training, or altering operational procedures based on lessons learned.

While avoidance involves steering clear of activities that could lead to risk, retention accepts certain risks without action to mitigate them. Transfer involves shifting the risk to another party, such as through insurance. These strategies do not specifically focus on learning from past experiences to prevent future hazards in the same way that loss prevention does.