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Loss PreventionUnnecessary losses automatically inflate costs. In order to keep an organization’s expenses competitive, it is critical to measure and mitigate risks in order to trim down the frequency of accidents.  Therefore, a long-lasting and efficiently communicated loss prevention program is crucial for risk mitigation.  Loss prevention indicates the identification, analysis and implementation of various techniques required for handling loss and other emergency situations.  Such steps help you diminish the chances of unanticipated losses such as thefts, injuries and damages caused by natural disasters like earthquakes or storms.

In this article we will shed light on some of the latest trends in loss prevention.

  • It is essential for loss prevention to work across several areas including the dealings of crime.  There can be several targets for fraud and crimes in any business. Criminals develop new practices continuously; therefore loss prevention should focus on restraining theft in different areas of an organization such as shoplifting, cyber attacks, and break-ins.
  • Loss prevention should work towards reducing the possibilities of shoplifting and theft by employees and customers in order to reduce losses. This is especially true for those organizations that are within the retail industry.  Hiring loss prevention personal to observe both the floor and stock rooms of retail locations can greatly reduce the possibility of losses in this manner.
  • Failure in accounting and procedural flaws also cause severe loses. Therefore, it is important to revamp weak and ineffective processes, poor training and inefficient supervision in order to prevent loses.  Embezzlement can cost an organization countless amounts of savings, therefore proper monitoring from multiple personal can greatly reduce the opportunities for missing funds.
  • Many organizations have succeeded in preventing loss by investing in the latest technologies that have been designed to help prevent loses such as CCTV, burglar alarms, or an EAS antenna.  Installing such tools however, is not enough.  There needs to be a loss prevention strategy in place for these tools to effectively work within the organization. Working with your risk manager, you may identify best practices for such tools.
  • Proper employee training is another loss prevention strategy.  By having a plan in place to routinely educate both veteran and new staff members, organizations can be assured proper measurements are in place should an accident occur such as theft, arson, or medical emergencies.
  • Consider entering into loss prevention partnerships. Joint venture with other facilities, along with law enforcement and risk management, helps significantly when learning about new and emerging loss trends. It also enables one to learn about loss prevention trends that are followed in a particular region.
  • Distribution scam is another growing problem that can prove to be quite expensive. When this occurs, organizations take out lines of credit from major distribution facilities then refuse to pay the credit off.  As of now, reported cases primarily occur within the retail industry but there are numerous cases in other industries such as manufacturing and construction.  Majority of retailers however state that such scams occur rarely. Statements such as these may indicate that the significance of this problem is being ignored. As a distributor, in order to combat this issue, an organization should appoint internal teams for evaluating the credit requests. They should also work jointly with other distribution facilities so as to share information regarding client organizations that have been identified as possible distribution scammers.

These are some of the new trends in loss prevention.  Loss prevention strategies should be the customary factor of any business. Audits of compliances and training sessions should be conducted on regular basis to combat loss. To eliminate or mitigate many of the above risk issues, a company should follow a robust strategy in order to deter such losses.

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Girija Shaffer

Girija Shaffer , CEO & Founder of Auspice Riskhas developed a full suite of customized risk management services offered nationally to Risk Managers, Insurance Program Managers, Brokers & Agents. Recognized for her ability to increase customer retention rates, increasing business development opportunities and providing outstanding customer service.