Creation of a standby or backup facility to be used only in case the original facility is damaged. Duplication reduces loss severity, but may have no effect on loss frequency.Separation : Division of an existing loss exposure into two or more units, all used in an organization’s daily operations. Separation reduces loss severity, but may increase loss frequency because of the larger number of units exposed to loss in daily use.Selection (of Risk) : (i) The choosing by an underwriter of risks acceptable to an insurer. (ii) A phrase used in reinsurance referring to the practice of ceding poorer business to a reinsurer while retaining good risks.