Conquer the CAS Challenge 2026 – Your Ultimate Actuarial Adventure Awaits!

A lax attitude toward loss prevention can significantly increase a business's vulnerability to losses. When a company does not prioritize or actively engage in loss prevention strategies, it can become more susceptible to risks such as accidents, theft, and other unforeseen events. Without proper measures in place to mitigate these risks, the likelihood of incidents occurring rises, which can lead to financial losses, increased insurance premiums, and potentially greater liability issues. This not only affects the financial stability of the business but can also impact its reputation, employee safety, and overall operational effectiveness. In summary, neglecting loss prevention can create an environment where losses are more likely to occur, making option B the correct understanding of the consequences of such an attitude.