Which method focuses on reducing the likelihood or severity of a loss?

The method that focuses on reducing the likelihood or severity of a loss is best identified as control. This approach involves implementing measures and practices designed to minimize the risks associated with a specific hazard or situation. By employing controls, organizations can mitigate potential losses by either preventing them outright or lessening their impact if they do occur.

For example, a company might use safety training programs and regular equipment maintenance to control the risks associated with workplace injuries. These strategies don't eliminate the risk entirely but make it less likely or less severe, demonstrating the essence of control as a risk management technique.