What is the only certain way to prevent loss?

Avoiding the risk entirely is the only certain way to prevent loss because it eliminates the possibility of an event occurring that could lead to a loss. When a risk is fully avoided, it means that the conditions or activities that could lead to that risk are not undertaken at all. For example, a company may choose not to launch a new product due to the uncertainties associated with its market acceptance, thus completely avoiding any potential losses associated with the failed product launch.

In contrast, controlling the risk, monitoring activities, or insuring against the risk can reduce the likelihood or impact of loss but do not completely eliminate the potential for loss. Risk control measures may mitigate risks but cannot guarantee absolute safety. Monitoring activities helps detect potential issues but does not prevent them from occurring in the first place. Insurance provides financial protection but does not prevent the risk itself from materializing. Therefore, avoiding the risk entirely stands out as the definitive way to prevent loss.