What is one potential method of reducing risk?

One method of reducing risk is purchasing a fire extinguisher. This proactive measure helps to mitigate the potential damage caused by a fire, thereby reducing the overall risk to life and property. By having a fire extinguisher on hand, individuals can quickly respond to small fires before they escalate, improving safety and potentially preventing significant losses.

In contrast, while increasing deductibles can influence the cost of insurance premiums, it does not directly reduce the risk; it merely shifts the financial responsibility in the event of a claim. Avoiding all types of insurance exposes an individual to higher risks since they would not be protected from unforeseen expenses. Relying solely on savings may provide some financial buffer, but it does not mitigate risks significantly, especially for large, unexpected events. Thus, having a fire extinguisher is a tangible action taken to reduce risk and enhance safety.