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Security checkers working to stop loss prevention

Security checkers working to stop loss prevention

We are also prevention specialist
 We are also prevention specialist

Loss prevention is a set of practices employed by retail companies to preserve profit. Profit preservation is any business activity specifically designed to reduce preventable losses. A preventable loss is any business cost caused by deliberate or inadvertent human actions, colloquially known as “shrink”. Deliberate human actions that cause loss to a retail company can be theft, fraud, vandalism, waste, abuse, or misconduct. Inadvertent human actions attributable to loss are purely poorly executed business processes, where employees ignorantly fail to follow existing policies or procedures. Loss prevention is mainly found within the retail sector but also can be found within other business environments.

Since retail loss prevention is geared towards the elimination of preventable loss and the bulk of preventable loss in retail is caused by deliberate human activity. Traditional approaches to retail loss prevention have been through visible security measures matched with technology such as CCTV and electronic sensor barriers. Most companies take this traditional approach by either having their own in house loss prevention team or they use external security agencies.

Charles A. Sennewald and John H. Christman state “Four elements are necessary for a successful loss prevention plan:

1) Total support from top management,

 2) A positive employee attitude,

 3) Maximum use of all available resources

 4) A system which establishes both responsibility and accountability for loss prevention through evaluations that are consistent and progressive.”

Loss prevention Staff

Loss prevention Staff

Internal is shrinkage caused by individuals from within the business such as staff members and cleaning staff and anyone else involved internally in the company. Internal shrink accounted for 35% of shrink to businesses in 2011 Internal shrink is caused by methods such as staff members stealing products, cashiers not ringing sales through the tills and keeping the payment for themselves, staff selling products to friends and family at discounted prices, sweet hearting where product is given for free to friends and family by staff, colluding with maintenance staff or external contractors to steal product and under ringing merchandise on the tills for friends or family so they end up paying less for the items. Internal theft traditionally causes more loss to a business then external theft due to the increased opportunity available to internal staff members and is summed up in the following quote “A well informed security superintendent of a nationwide chain of retail stores has estimated that between forty and fifty shoplifting incidents to equal the annual loss caused by one dishonest individual inside an organization”.

 

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