The most effective approach to risk management emphasizes proactive measures taken before a loss occurs. Implementing an efficient before-the-loss arrangement involves:

Identifying potential threats and vulnerabilities

Prioritizing assets and exposures

Designing protective measures and contingency plans

Allocating resources to minimize potential operational, financial, and safety impacts

Reactive measures, such as arranging after-the-loss recovery or focusing exclusively on loss-prevention techniques, do not comprehensively address risk and may leave organizations exposed. Calculated-risk theory provides a framework for decision-making but must be applied within a before-the-loss strategy to optimize mitigation and resource allocation.

This aligns with ASIS PSP guidance, which underscores the importance of anticipating risks and implementing protective measures in advance rather than relying primarily on post-loss actions.