Loss prevention management aims to prevent or reduce losses from property damage, theft, and fraud. It involves creating a safer working environment, protecting buildings from natural disasters, and preventing theft and fraud in retail organizations.
Businesses purchase insurance and invest in other ways to mitigate and overcome losses from property damage, theft, and fraud. The best way to deal with these losses, however, is to avoid them. The practice of loss prevention management is to understand what specific vulnerabilities a company has and then try to prevent them from happening or reduce their impact, given the resources and nature of the company. There are many different forms of loss prevention management, such as asset protection for retail organizations, loss prevention for employees, and loss control for facilities and other property.
Loss prevention for property involves the proper engineering and construction of buildings so that they are not damaged by fire, hurricanes, earthquakes and snowstorms. For the hurricane, for example, a building’s roof can be reinforced so strong winds don’t rip them off, and windows can be protected so they don’t shatter with flying debris. Earthquake loss prevention management, on the other hand, can involve adequately protecting shelves and other internal contents of a building, while ensuring that the structure can withstand the tremor caused by the earthquake.
In the structure of workers’ composition, loss prevention management aims to create a safer working environment, so that employees are not injured during work. It could be a simple matter of requiring employees to wear non-slip shoes in a restaurant so they don’t slip while waiting tables or working in the kitchen. For factory or warehouse workers, loss prevention management can involve teaching them proper ergonomics so that they lift packages properly and use machines safely. Another aspect of loss prevention management for employees is creating a culture of safety within the organization, from executives down to hourly employees.
Retail loss prevention, also known as asset protection, starts with trying to stop theft, shoplifting, employee embezzlement and fraud. When a loss occurs, this type of loss prevention management takes the form of private investigation. Loss control professionals are responsible for managing the store’s security programs and dealing with any employees who may be responsible for losses. Some of the main types of retail losses that loss prevention management professionals look for include stolen credit card use, fraud verification, margin loss, and boyfriend hunting. The latter occurs when employees find competitive prices matching customers, offering special deals to friends and family, or reducing fees associated with deliveries and warranties.
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