LOSS PREVENTION & RISK MANAGEMENT PROGRAM

Loss Prevention Program A loss prevention program is helpful to promote the organization safe along with create healthful work condition for the staff. A well planned loss prevention program is needed in order to prevent the losses in retail operation.

Steps For Loss Prevention Program Safety statement and objectives The target of loss prevention program is to prevent the losses appears in retail business. Identification of reason for losses in retail operations Losses may occur in many ways in the retail operation and if there are theft related losses then the retail operation is forced to bankruptcy.

Retail losses from Internal Theft: It occurs because of cash theft, price change, refund system abuse or for not charging merchandise or friends, kickbacks from vendors etc. Retail losses from External Theft: Vandalism, burglary, robbery, credit card and coupon fraud, bad checks and shoplifting are the reason for retail losses from external sources.

Tactics to prevent internal theft  There should an established sound pre-employment screening method  Cash handling processes and refund policy should be austere  There should cash register software to identify suspicious transactions  Inspection to appear at a random  There should be a code of conduct for the employees about their behavior  In order to test the cash handling procedures and services of an employee, independent honesty shopping services may be used.

Strategies to improve the external theft  The use of adequate exterior lightning, physical security, and subscription to central alarm station can prevent vandalism and burglary.  In order to reduce credit card fraud, what is necessary is to carefully examine the card holder accompanied by the verification of the signature and positive identification of the purchaser.  Other approaches would be proper anticipation, proper display of merchandise, surveillance equipment, inspecting package and fitting room, properly enforced funds measures, locking devices and alarms.

Training employees It is necessary to train the employees in order to implement these strategies. Proper training helps employees handle the situation. Also it helps understand their duty in the organization. Implementation The loss prevention tactics would work after training the employees properly. Work safety review and inspection  The process should be inspected after six months.  Helps the organization in finding the staff`s work methods.

Risk management “It is the process of assessing the risk and developing strategies to manage it.” Principles of risk management Organizational context Various political, economic, societal, technical, legal and environmental factors affect every organization. These factors have to be indentified in order to help the organization to take action against them.

Involvement of stakeholder It is important to inform the stakeholder about their role play in risk management process. Organizational objectives The whole objective should be kept in mind while performing a part of it. Management of risk approach While taking decisions, it is a good idea to remember the past mistakes and learn from it.

Reporting Transparency and visibility is important. All the policies and procedures have to be explained to people. Roles and responsibilities All the individuals should understand what is his/her part in risk management program. It helps the program succeed. Support structure It is important to explain it to everyone how the risk is managed and their questions should be answered. Early warning indicators It is important for everybody to highlight the important issues. It is necessary to learn to react in the event a risk does.

Review cycle It is important for the risk board to be visible and also needs to be reviewed regularly. Overcoming barrier to the management of risk It is important that every one is giving his/her best in response to risk management. Supportive culture The team should feel comfortable. While discussing risk management, an open communication should be maintained between the managers and employees. Continual improvement A continuous evaluation on the way of risk management is important along with the Ongoing risk inspection.

References 12 principles of risk management.(n.d). Retrieved from management-pmbok-with-an-agile-slant/ Ortmeier, P. J. (2009). Introduction to security operations and management (3rd edition). Upper Saddle River, NJ: Pearson/Prentice Hall. Loss prevention program.(2010). Retrieved from