What are the three basic methods of dealing with risk in the risk management process?

What will be an ideal response?

The only three alternatives to risk are to 1. avoid, 2. retain, or 3. transfer. All other methods are extensions or combinations of these three. Self-insurance is retention. Loss control (prevention and/or reduction) on the other hand is used to reduce the frequency and/or severity of losses, regardless of whether the exposure has been retained or transferred. This decision is usually subject to a cost benefit analysis.