What concept involves controlling potential losses and may include requirements imposed on the Assured?

Risk management is the concept that involves controlling potential losses and often includes various requirements imposed on the Assured. This can encompass a range of strategies and practices aimed at identifying, assessing, and mitigating risks associated with potential financial losses. The focus of risk management is not just on the aftermath of a loss, but rather on proactive measures that can be taken to prevent losses from occurring in the first place.

In a non-life insurance context, effective risk management can involve the assessment of the insured party's operations, safety measures, and adherence to certain standards that reduce exposure to risk. For instance, an insurance company may require its clients to implement safety protocols or maintain certain compliance measures to qualify for coverage or to obtain better premiums. This highlights how risk management encompasses the broader approach of controlling risks before they lead to claims.

The other options refer to different aspects of the insurance process. Loss adjustment pertains to the process of validating and settling claims after a loss has occurred, underwriting involves the evaluation of risk to determine whether to offer insurance and at what price, and claims handling is focused on the management of claims after they have been filed. All of these are essential components of insurance, but they do not center specifically on the preemptive control of losses like risk management does