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Loss Prevention

Loss prevention is the concerted effort of a business using best practices to prevent any loss to its assets and revenue.

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What is the importance of loss prevention?

Loss prevention is a type of risk assessment that aims to maximize a business enterprise’s profits by better managing preventable losses.
Retail shrink, a preventable loss in the retail industry, costs businesses a total of $50.6 billion in losses due to theft, shoplifting, error, and fraudulent activities.
Loss prevention aims to proactively address this by implementing best practices and strategies.

Loss Prevention & Best Practices

Loss prevention best practices or preventive measures can be implemented on three fronts: processes and procedures, systems, and people.

Processes and Procedures

These are the business policies in your company and the standard operating procedures that are implemented in operations. These policies and procedures work together to foster an environment that deters activities that could lead to losses.

Policies that help prevent loss can be something as simple as house rules to something as stringent as company policies on employee handbooks that outline acceptable behaviour and describe corresponding repercussions for non-compliance.

Systems and Technology

This includes technology for monitoring and surveillance systems used in the business that help monitor operations and maintain the integrity and efficient use of business resources—company assets, sensitive data, products and services, as well as the proper implementation of processes.

Technology can be in the form of CCTV live monitoring of operations and discovering real employees and customers theft using best monitoring tools utilized and verified by Loss prevention analytics. Those theft clips can be stored and shared with the business.

People

One of the most crucial contributors to business losses is dishonest employees. Last year, shoplifting apprehensions were down 43.8 percent and recovery dollars decreased 36.5 percent.

Loss Prevention Strategies and Tools

Loss can come in many forms and the best way to cover your bases is to address the causes of loss that are prevalent in an industry or a particular area of business. Here are loss prevention strategies and tools you can use for your business to cover retail loss prevention, cyber security and data loss prevention, as well as employee buy-in and competency.

Retail Loss Prevention

Loss prevention is popular in retail because the nature of retail makes it potentially vulnerable to loss if preventive measures are not put in place. For sizable retail establishments, loss prevention officers help ensure that loss prevention measures are followed to minimize retail shrinkage.

Retail shrinkage is the loss of inventory caused by shoplifting, employee theft, vendor fraud, damage, intrusion, unauthorized breaches, administrative error, or cashier error. Retail shrinkage is the difference between what is recorded in the inventory and the actual inventory of the retail establishment. Shrinkage leads to loss of inventory which directly translates to loss of profits as it is something that cannot be sold anymore.

Tools for Retail Loss Prevention

Retail store managers, loss prevention officers, and store employees can work together and use the following tools to help ensure that the retail establishment manages inventory and the daily operations of the store in order to minimize retail shrinkage:

Risk Assessment

Risk assessment is a strategy to proactively determine risks and come up with preventive measures and mitigation in order to eliminate the occurrence or minimize the negative impact of risks to a business. Incidents and accidents within business premises could lead to losses that could have been initially prevented. We will minimize the possibilities of those events occurring.

Retail businesses of all sizes need to have a plan regarding retail loss prevention. Inventory shrinkage, or loss of inventory due to shoplifting, employee theft or vendor fraud, cause over $50+ billion in losses every year, according to a 2019 National Retail Federation survey

However, the value of each incident increased. In 2020, shoplifting averaged $310.11, which was an increase of 13 percent the year prior. Like shoplifting, events involving dishonest employees decreased during the shutdowns of 2020. In total, 26,463 dishonest employees were apprehended, according to the 33rd Annual Retail Theft Survey, but the value of each event was higher.

Last year each employee theft averaged $1219.61 (up 3.8 percent in 2020).

Our Services

Our team will notify you of all instances of theft that occur and proceed to immediately show an in-depth, detailed report of the incident at hand. Dishonest employees remain a major issue

OUR SERVICES HELPS YOU INCREASE YOUR RESILIENCE

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PROTECT

We strive to protect our clients through our 24/7 surveillance and monitoring services.

CONSULT

Our clients will be contacted and consulted at the moment of any unusual activity.

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What is the importance of loss prevention?

Employee Theft

Inventory Theft

Shoplifting