What action is described as minimizing the severity of a potential loss?

The action described as minimizing the severity of a potential loss is risk reduction. This strategy involves implementing measures or controls to decrease the likelihood or impact of a loss event. For example, a company might enhance security measures to lower the chances of theft or implement safety training to mitigate workplace accidents. By taking such steps, an organization can effectively reduce the severity and consequences of potential risks, rather than completely eliminating them. This proactive approach is crucial in risk management, as it aims to lessen the financial or operational impact should an adverse event occur.