CORPORATE LOSS SECURITY

Loss Prevention is interdisciplinary, (encompasses all the

other eight subjects). The future of Corporate loss
programmes is not apprehension, but in the prevention of
the loss of corporate assets.

More proactive, less reactive.

Crime in the workplace is not inevitable.

 SECURITY/LOSS PREVENTION DEFINED

SECURITY
defined as use of traditional methods (i.e. guards, fences
and alarms) used to increase the likelihood of a crime
controlled tranquil environment.

LOSS PREVENTION
is broadly defined as any method of variety of methods
(i.e. guards, safety auditing and insurance) used to
increase the likelihood of preventing and controlling loss
(e.g. crime, fire, accident, error, poor supervision or
management and bad investments
 CRIME PREVENTION
1. Crime Prevention Officer (CPO)
is a public servant with police powers.
2. Loss Prevention Officer (LPO)
is in the private sector, and his powers come
from the CEO, and are different to those
of the police.
LOSS PREVENTION PROFESSIONAL
- tend to concentrate on combating weaknesses,
or vulnerability to crime

RISK MANAGERS
- tend to be more concerned with accidents, fire
and safety issues, and dealing with insurance
companies
ROLE OF LOSS PREVENTION MANAGER
1. Reflects the needs/objectives of upper management
a) Establish priorities
b) Develop written procedures
c) Form integrated management teams

2. Key questions, needed to be asked:

a) Upper management support?
b) Adequate budget, to do the proactive approach
c) Appropriate level of authority
3. Practical Management Tools
a) Directive Systems - communicate information
within an organized group, verbal or written;
b) Policies - controls employee decision making
process, reflects goals and objectives of
management;
c) Procedures - a way of doing things, guides
actions;
d) Participatory Management - employee
participate in decisions; improves moral.
4. Management by Objective (MBO)
Five basics steps:
1) Recognition of Loss Prevention needs
2) Establishing long-term goals, reduces losses,
3) Establishing short-term objectives-agree on
measurement
4) Implement programmes
5) Evaluate programmes
 CONCEPT OF RISK MANAGEMENT

RISK MANAGEMENT
Anticipation, recognition and appraisal of a risk,
and the initiation of some action to remove risk or
reduce the potential loss from it to an acceptable
level.

CATEGORIES OF RISK
a) Personal
b) Property
c) Liability
 TYPES OF RISK
1. PURE OR STATIC RISK
- no potential of benefits derived, only loss
(WACOE)

2. DYNAMIC OR SPECULATIVE RISKS

- can produce gain and profit or loss
CRIME RISK MANAGEMENT METHODS
1. RISK AVOIDANCE
- removal of the target altogether
2. RISK REDUCTION/ABATEMENT
- minimize the vulnerability, by a combination of
reduction quantities or the introduction of security
measures.
3. RISK SPREADING
- the potential target is spread over as wide an area as
possible
4. RISK ACCEPTANCE
- accepting risk, referred to as the cost of doing
business
5. RISK TRANSFER
- can be a costly option
 4 D’s of Loss Prevention

1. DETER (attacks)

2. DETECT (attacker)

3. DELAY (allow time for response)

4. DENY (to critical areas)

INSURANCE ROLES
Insurance rates are dependent on two (2) primary
variables:

1. Frequency of Claim – how many

2. Cost of each claim – how much

The insurance industry is subject to two powerful

forms of control :
• Competition within the insurance industry
2. Government regulation of the insurance
industry
 PREVENTING INTERNAL THREATS
1. INTERNAL THEFT
a) Highest losses
b) Pilferage
c) Embezzlement
d) Shrinkage
2. Why do Employees Steal
a) Personal Problem
b) Environmental influences
c) Rationalization
3. DANGER SIGNS
a) Counterproductive behavior
b) Conspicuous consumer
c) Financial Irresponsibility
d) Financially squeezed

4. MANAGERIAL COUNTERMEASURES
a) Crime prevention works
b) Pre-employment screening
c) Internal Controls
d) Accountability and auditing
e) Management Support
f) Policy and Procedural controls
g) Toll free hot line
h) Thorough investigation
i) Confrontation with employee suspects
j) Prosecution and firing policy on guilt
ACCOUNTING/ACCOUNTABILITY/AUDITING
DEFINITIONS:
•Accounting - recording, sorting, summarizing,
reporting and interpreting data related to business
transactions
•Accountability - involves an obligation to someone
for something specified
•Auditing - examination or check of something,
primarily to uncover deviations

•Common characteristics - they all create and

provide a written record of some kind
Basic Method for Preventing Fraud Losses

To implement internal controls so no one individual

can have complete control over any financial
transaction.
CPTED ACRONYM
Crime Prevention Through Environmental Design

ENVIRONMENTAL SECURITY (E/S)

Primary Goal: is reduction of neighborhood crime by
maximizing opportunities for apprehension by increasing
time required to commit the crime
 3-D’s Approach
1. Designated purpose
– of building or environment
2. Defined behaviors
– of people in the environment
3. Design
– to control and support those behaviors

Safety and Loss Prevention

Major loss prevention measure to reduce likelihood of
Accidents and injuries.
 Accident / Incident Assessment
Safety experts state that unsafe acts cause 85% of
all accidents and 15% are caused by unsafe conditions:
1. Incident is anything from production problem,
to serious injury, to breakdown in quality control.
2. Accident is an undesirable event resulting in
physical harm to a person.
Accident Cause and Removal
1. Constant Inspection
2. Job Safety Analysis
3. Discover/Remove Unsafe Conditions
4. Investigate All Accidents and Near-Misses
Accident Investigation

1. As soon as possible
2. Do it at the scene
3. Determine causes or faults

Hazardous Material Programme

1. Identify
2. Responding
3. Establish Safeguards
4. Training