Which of the following is NOT a risk control technique used by community associations?

• A. Exposure avoidance
• B. Loss prevention and reduction
• C. Segregation of exposure
• D. Compliance audits

Answer: (D)

Understanding how risk is managed in a community association helps explain why compliance audits don’t fit the same category as the other choices. Exposure avoidance means choosing to skip activities or situations that would create risk, directly reducing the chance of an incident. Loss prevention and reduction involves concrete measures to prevent problems or lessen their impact when they happen, such as safety programs, maintenance, and inspections. Segregation of exposure means separating or isolating different risks so that a problem in one area doesn’t affect another.

Compliance audits, while important for governance and ensuring rules and regulations are followed, are not a proactive risk control technique. They’re an assurance activity that checks whether controls are in place and functioning; they don’t by themselves reduce or manage a risk exposure. Therefore, compliance audits do not constitute a risk control technique, making them the option that does not fit with the others.