He has explored the outer limits of our loss prevention universe and put it into understandable language in his book, Retail Security and Loss Prevention. Retail security and loss prevention was a true team effort and I am grateful to each and every one of you.
Retail Security and Loss Prevention
Retail Risks
Problems and
Solutions
Employee Theft
To avoid this type of theft, all bank deposits must be verified and approved by a board member. All employees must be aware of company policy regarding the "use" of company funds for personal endeavors.
RESTITUTION AGREEMENT PROMISSORY NOTE AND
A retail investigator must be a neutral third party and enter the investigation with an open mind. When the thief has been discovered, the investigator must determine whether there is sufficient evidence to take action (such as termination, criminal prosecution, or civil action) or whether the investigation should be discontinued due to a lack of evidence.
Managing Employee Honesty
Application Verification—An employment application that complies with applicable legal standards must be completed in its entirety. The next part of an employee theft control plan is to establish operational controls and, when implemented, monitor the adequacy and effectiveness of the controls.
Vendor Theft and Error
When goods are returned to the seller due to seller error, please be aware that all inbound and outbound freight charges must be paid by the seller. This practice also eliminates the possibility of injury to customers entering the same entrance.
Controlling Cargo Theft
Shoplifting
Encourage them to come back to the store by telling them you will discuss everything in the office. Send a legible copy of the incident report to the civil rescue company or other appropriate individuals or groups.
Point-of-Sale Risks
This is highly subjective, but if in doubt, subjects should be asked to sign their name again in the presence of the clerk. Make sure the notice includes a copy of the mischeck along with a notice from state authorities. Copy the credit card customer's name, address, and phone number from the photo ID, then ask the authorization center to verify that information.
It was a serious problem in the early history of the United States, when banks issued their own currency. There are three types or classes of US. The name of each class appears on the top of the bill.
Miscellaneous Risks
Install windows that are of the same shatter-resistant quality as the doors and wire them to the alarm system. Ensure that parking areas and the perimeter of the building are well lit to discourage individuals from loitering in the area. SHOULD THE TROOPER KNOW THE BUILDER ACCORDING TO HIS DESCRIPTION OF THE LOCATION OF THE BOMB.
Notify the store manager of the bomb threat (or the person in charge), if you were unable to contact the manager while the caller was on the line. This is an expense that can be partially controlled by gaining an understanding of the problem.
Identifying and Prioritizing Risks
Security Surveys
The best predictor of the future is often the past and this axiom also applies to retail. After the likely risks have been identified and historical data on incidents involving those risks has been collected, the next step of the investigation is to identify the assets to be protected. This view of the company as a system, not a static entity, should be the mindset of those involved in deficit reduction.
An examination of the company's current protection program is the final part of the security investigation. The details of the investigation conducted depend on the loss control director's goals.
Data Analysis
Lost Income Costs – The loss of the use of a store or key items may result in the operation having to divert cash that could be earning interest elsewhere to subsidize replacement costs and related costs. A Rating—Grave—a loss of this magnitude could result in the abandonment or long-term closure of the business. B Rating – Critical – a loss of this magnitude could have a major negative impact on the company's assets or could force a major change in the company's investment policy.
D Rating - Moderate - a loss of this magnitude would be covered by normal contingency reserve funds. 2 Rating—Very Likely—This type of incident is more likely to occur than not to occur.
PART
Designing and Implementing
Loss Prevention
Another factor to consider during the design phase is the ability of managers in charge of the security function and their staff to effectively manage the loss prevention program. One step of the integrated loss prevention program is to define an appropriate protection program based on a variety of security-related factors. Physical—protecting assets by implementing physical equipment and services to deter, delay and detect loss events.
Personnel – protecting assets by screening employees, implementing procedural controls, training employees to do their jobs (including loss control procedures), and implementing fair and consistent disciplinary procedures. Regardless of the level of protection required, the concept of defense in depth is a must.
People
The loss prevention specialist is usually assigned to one or more stores depending on the size of the company's stores. District and store managers are rarely prepared to supervise loss prevention specialists at the store level for three reasons. Senior management's primary loss prevention role is to approve, approve, and comply with the security program.
The internal director of loss prevention should not feel that the use of a consultant signals their inability to solve shrinkage problems. Because of the need for well-educated, motivated employees, loss prevention directors request expert speakers and safety trainers to conduct workshops for key district and store personnel.
Programs
Non-disclosure of proprietary information - information that should not be disclosed to anyone unless specifically authorized. Apprehending, apprehending, and disposing of dishonest employees and shoplifters—the company's approach to detecting and dealing with suspected shoplifters, including criminal prosecution, termination of employment, and civil action. Some of the more common loss control procedures are discussed on the following pages.
The potential for crime is the primary concern of a loss prevention professional when evaluating a new city. One of the most effective ways to protect retailers is to have a written policy and procedures manual—theft and error prevention policies and procedures are among the most important.
Security Systems
Doors - The barrier at the point of entry must provide maximum delay time by forcing the offender to grab the lock or use sophisticated tools to force entry. Roof— If a potential intruder could gain access to the roof of the premises, the roof must be adequately constructed to resist entry. Standby lighting – the same as continuous lighting, but designed to back up or supplement primary lighting systems.
Another technique to combat sensors is to set the room temperature to 85-88 degrees Fahrenheit - the approximate temperature of human skin - and remain in the room until the system is turned on. Computerized Time Systems - Computerized time systems are a sophisticated version of the standard time clock.
Selecting Protection Equipment and Services
The retailer's business advisor should be involved in drafting and/or reviewing the contract before the documents are signed. Any acceptable installation plan must be realistic and must take into account other activities and projects on both the vendor and retail side. The time frame required to perform the service or install the equipment should be detailed in the contract and the seller should adhere to these terms.
The dealer should keep in touch with the seller on a regular basis to ensure that everything is going according to plan. The seller's efforts should be monitored periodically to evaluate progress and assist where necessary.
Sample Protection Program
Prepare the Training and Implementation Schedule
Training and operations should be planned to allow for the simultaneous accomplishment of more than one task, if possible. If certain services or equipment are absolutely required to reduce shrinkage, the necessary resources should be proposed and vigorously lobbied for. The critiques will also provide ideas for future training and how it should be conducted.
Evaluators and staff participating in the programs should be included in any criticism. When estimating the time required for training or implementation, managers who will lead the training or supervision should be consulted.
Annex A Loss Control
Departmental Goals
Annex B Loss Control
Training Objectives
Annex C
Director's Program-
Four "A"s for Loss Control
When an employee deters an incident, recovers merchandise or provides information leading to an arrest, a request for bonus points can be made. Controls can be internal or external and may be designed to protect cash or property. More pre-labeled, high-loss items will be requested from the supplier to reduce the store's labor requirement for this effort.
The inspection report will point out specific problems to store and district managers so that a concentrated effort can be made to reduce them. We will combine this data with a trend analysis report showing incident type, high loss time and high loss location to allow our loss prevention resources to be applied quickly and efficiently.
Annex D
Individual Departmental Tasks
Annex E Follow-Up
I nterdepartmental
Meetings
Annex F
Fiscal Year T&l Calendar
Implementing the Program
If the amount of the loss exceeds the cost of the program (and the capital cost of the money spent on the program), the program can be justified. The retailer then subtracts the projected cost of the loss control program from the above ROI figure (or the combined total of avoided loss and recoveries), which includes all losses to be avoided and the projected dollar amount of recoveries. 34;types." At all times, loss control managers or their staff must dress and act like competent professionals.
Maintain a fresh and focused view of the department's methods and objectives by reading books and magazines on retailing and retail loss control. This loss control executive activity will become apparent to key decision makers.
Testing and Follow-Up of the Loss Control
Programs
Auditing and Follow-Up
Inventories*
Comparing the actual physical inventory with the book inventory allows the retailer to verify the accuracy of the records being performed not only in the office, but also in the receiving and marking department and on the sales floor. If the physical inventory count is inaccurate, the information obtained will obviously be useless. When the physical inventory is incorrect, the compensation amount is calculated incorrectly.
Fortunately, there are steps the retailer can take to ensure the accuracy of a physical inventory. Taking a good physical inventory involves almost all of the store's employees, whether they work on the sales floor, in the receiving and marking department or in the office.
9 The Future
Companies must make a concerted effort to recognize and reward employees for sound loss control behavior. As technology improves, it will give retailers the tools they need to significantly reduce losses from theft. The systems also become less costly to operate, as the tags come with the product and do not have to be purchased separately.
Clearly define problems and goals, and design and implement simple, clearly stated strategies to minimize the negative impact of loss control problems. Rapidly changing technologies will greatly increase loss control efforts, but good, sound leadership and management provide the ultimate solution to loss control problems.
Sample Conflict of Interest Policy
