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Loss Mitigation refers to strategies and actions taken to minimize financial losses in investment portfolios, lending, or business operations. In finance, this can include hedging strategies, diversification, or adjusting asset allocation. AI tools like Orion AI and Olympus AI help with loss mitigation by identifying potential risks early, running scenario simulations, and recommending protective measures. In lending, loss mitigation can involve restructuring loans or modifying repayment plans to avoid defaults. Effective loss mitigation preserves capital, maintains profitability, and reduces exposure to adverse market events.
