Answer: (D) Control loss
Explanation:
The control loss is one of the type of technique that manage the risk management in an organization.
The controlling loss is the process that reduce the actual possibility of the loss and also manage all the confidential information about the company for control the lose.
According to the question, due to the labor shortage in the McDonald- The fast food restaurant, the new employees are immediately join the job after the training program and this standard create the control loss in an organization.
Therefore, Option (D) is correct.
This nonconformity to standards creates control loss.
Control loss refers to a risk management strategy that is meant to minimize risk or reduce the chances that a loss will take place.
In the given scenario, Macdonald's fast food restaurant waived the training programs for the new employees to block the loopholes created by the shortages of workers. Also, Macdonald might have taken this proactive measure to prevent losing its customers which can negatively affect its income
Control loss is also known as risk control, it refers to the techniques used by companies to access potential losses and take proper actions to reduce the threats. This method involves identifying risk factors in the operations of the company such as employee shortage, financial policies or other things that may threaten the company’s operation.
Control loss seeks to take proactive measures to minimize risk and also helps companies to limit the loss of assets and income.
Risk control methods are very essential for firms as it helps to reduce risk and also provide the opportunity to identify, control and reduce the risk in the company's operation.
However, a risk refers to being exposed to loss or injury.
Therefore, this nonconformity to standards creates control loss.
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