Loss Avoidance

Loss Avoidance

The strategy in which one does not take a position in order to guarantee that a loss does not occur. For example, one may decide not to purchase a house in order to guarantee that one never has to pay to repair the roof. Loss avoidance, however, guarantees no profit. As a result, investors seek to hedge risk rather than avoid it altogether.
References in periodicals archive ?
Contingency-shaped and rule-governed behavior: Instructional control of human loss avoidance.
When these payoffs represent monetary gains and losses, then despite this seeming equivalence, our notions of loss avoidance make qualitative predictions regarding how individuals' choices might change across the games.
It also checks for loss avoidance trading, also illegal if based on material non-public information.
data loss avoidance, verified protection, leveraged data and complete
SCUA Middle East, now a member of LOC Middle East, will maintain its services related to all kinds of marine insurance claims, casualty, plus loss avoidance, and also handle engineering and energy concerns in the sectors of shipping, oil and gas.
Finally, enterprise-wide implementation of these systems significantly contributes to reductions in liability and proactive loss avoidance.
This awareness is likely brought on by recent high-profile cases involving records and information and new laws and regulations, though the awareness of the rationale for records and information risk management still is likely to focus attention on loss avoidance rather than opportunity maximization.
For 72 percent of those surveyed, loss avoidance was the primary indicator of ERM success, followed by lower volatility of earnings (60 percent), contribution to improved shareholder value (58 percent) and favorable comments from analysts and regulators (49 percent).
ALMA can also be used to gather process information, enhancing the process knowledge of mill personnel and assisting in production loss avoidance.
Risk would be then allocated to actual business processes, leaving CFOs the freedom to make purchasing decisions on a loss avoidance basis.
In contrast to the PGG where subjects contribute to the public good a certain amount, in the SNG they contribute a lottery whose odds are determined by their chosen loss avoidance level.