What term describes a risk control technique that spreads loss exposures over various projects, products, markets, or regions?

The correct choice is diversification. This term describes a risk control strategy that spreads potential loss exposures across a variety of projects, products, markets, or geographical regions. By engaging in diversification, a firm can reduce its overall risk because unfavorable events affecting one area are less likely to impact all areas simultaneously. For example, if a company only invests in a single product line, it is highly vulnerable to changes in that market. However, if it diversifies its investments across multiple product lines or regions, the negative impact of a downturn in one area can be offset by stability or growth in others. This technique is crucial in effective risk management and financial stability.

The other terms represent different concepts: capitalization refers to the amount of capital deployed in a business, consolidation typically means the combination of resources or entities, and segmentation refers to dividing a market into identifiable groups for targeted marketing efforts. These do not embody the risk-spreading strategy that diversification signifies.