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Loss Prevention Presentation
Loss Prevention Presentation
Loss Prevention Presentation
Loss Prevention Presentation
Loss Prevention Presentation
Loss Prevention Presentation
Loss Prevention Presentation
Loss Prevention Presentation
Loss Prevention Presentation
Loss Prevention Presentation
Loss Prevention Presentation
Loss Prevention Presentation
Loss Prevention Presentation
Loss Prevention Presentation
Loss Prevention Presentation
Loss Prevention Presentation
Loss Prevention Presentation
Loss Prevention Presentation
Loss Prevention Presentation
Loss Prevention Presentation
Loss Prevention Presentation
Loss Prevention Presentation
Loss Prevention Presentation
Loss Prevention Presentation
Loss Prevention Presentation
Loss Prevention Presentation
Loss Prevention Presentation
Loss Prevention Presentation
Loss Prevention Presentation
Loss Prevention Presentation
Loss Prevention Presentation
Loss Prevention Presentation
Loss Prevention Presentation
Loss Prevention Presentation
Loss Prevention Presentation
Loss Prevention Presentation
Loss Prevention Presentation
Loss Prevention Presentation
Loss Prevention Presentation
Loss Prevention Presentation
Loss Prevention Presentation
Loss Prevention Presentation
Loss Prevention Presentation
Loss Prevention Presentation
Loss Prevention Presentation
Loss Prevention Presentation
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Loss Prevention Presentation

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Loss Prevention Information

Loss Prevention Information

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  • 1. TODAY’S LOSS PREVENTION Joshua McAfee C.F.E., C.F.I.
  • 2. HISTORICAL OVERVIEW <ul><li>First codification of law – 1800 BC – Hammurabi’s Code </li></ul><ul><li>Modern Police Roots – Sir Robert Peel – in 1829 – COP, Crime Prevention first started </li></ul><ul><li>1980, Association of Chief of Police, made crime prevention as a standard police function. </li></ul><ul><li>CPO – Crime Prevention Officer – a public servant with police powers. </li></ul><ul><li>LPO – Loss Prevention Officer – private sector deriving authority from an employer. </li></ul>
  • 3. LP FOUNDATION TOOLS <ul><li>Five tools that form the foundation of a Loss Prevention program. </li></ul>
  • 4. 1 ST LP TOOL <ul><li>RISK ANALYSIS – Estimating expected loss from a specific threat – has 3 steps: </li></ul><ul><li>1. Loss Prevention Survey </li></ul><ul><li>2. Identifying vulnerabilities </li></ul><ul><li>3. Determining probability / frequency / costs </li></ul><ul><li>Process leads to the Loss Prevent Profile. </li></ul>
  • 5. LOSS EVENT PROFILE <ul><li>LOSS EVENT PROFILE: </li></ul><ul><li>1. Type of Risk </li></ul><ul><li>2. Probability of Event </li></ul><ul><li>3. Criticality of Event </li></ul>
  • 6. 2 ND LP TOOL <ul><li>PLANNING – Results in a design for reaching objectives – must fulfill organizational goals – Respond to: </li></ul><ul><li>1. What is cost? </li></ul><ul><li>2. Is it practical? </li></ul><ul><li>3. Is it cost effective? </li></ul><ul><li>4. Will Management support strategy. </li></ul>
  • 7. 3 RD LP TOOL <ul><li>EVAULATION – A critical tool once program is implemented. Ways to do this: </li></ul><ul><li>1. Pre test / Post test design </li></ul><ul><li>2. Experimental / Control Group Design </li></ul>
  • 8. 4TH LP TOOL <ul><li>RESEARCH – Four basic steps: </li></ul><ul><li>1. Statement of the problem </li></ul><ul><li>2. Hypothesis </li></ul><ul><li>3. Testing </li></ul><ul><li>4. Conclusion </li></ul>
  • 9. 5 TH LP TOOL <ul><li>STANDARDS – Promotes uniformity; E.G., UL, NFPA, OSHA </li></ul>
  • 10. CRIME ANALYSIS AND LP <ul><li>Crime analysis, a systematic approach to studying crime problems, collects, categorizes and disseminates accurate, timely and useful information to line personnel. </li></ul><ul><li>Four specific steps of crime analysis: </li></ul><ul><li>1. Data collection </li></ul><ul><li>2. Analysis </li></ul><ul><li>3. Dissemination </li></ul><ul><li>4. Feedback </li></ul>
  • 11. LP MANAGER <ul><li>Lets say something about the LP Manager’s role. </li></ul>
  • 12. ROLE OF LP MANAGER <ul><li>Reflects needs/objectives of upper management and needs to : </li></ul><ul><li>1. Establish Priorities </li></ul><ul><li>2. Develop Written Polices </li></ul><ul><li>3. Form integrated management teams </li></ul>
  • 13. KEY QUESTIONS <ul><li>Does LP Manager have: </li></ul><ul><li>1. Upper Management Support </li></ul><ul><li>2. Adequate Budget </li></ul><ul><li>3. Appropriate Level of Authority </li></ul>
  • 14. CRIME PREVENTION
  • 15. FOUR D’S OF CRIME PREVENTION <ul><li>DETER - criminal attacks </li></ul><ul><li>DETECT – attacks that occur </li></ul><ul><li>DELAY – attack to allow time for response </li></ul><ul><li>DENY – access to selected targets </li></ul>
  • 16. ENVIRONMENTAL DESIGN <ul><li>Environmental design, or physical planning, is an approach to crime prevention in residential and commercial areas by coordinating efforts of architects, loss prevention practitioners, and police. </li></ul>
  • 17. CPTED <ul><li>Crime prevention through environmental design (CPTED) advocates that the proper design and effective use of the building environment leads to a reduction in crime and the fear of crime. </li></ul>
  • 18. CPTED 3 BASIC STRATEGIES <ul><li>Natural access control </li></ul><ul><li>Natural surveillance </li></ul><ul><li>Barriers (Territoriality) </li></ul>
  • 19. “ DEFENSIBLE SPACE” <ul><li>Written by Oscar Newman </li></ul><ul><li>Strategies from a New York housing project. </li></ul><ul><li>Essence of the concept is that better residential security can be brought about through environmental and architectural design coordinated with crime prevention methods. </li></ul>
  • 20. ENVIRONMENTAL SECURITY (E/S) <ul><li>Is an urban planning and design process which integrates crime prevention with neighborhood design and urban development. </li></ul><ul><li>The basic premise of (E/S) – design and redesign of urban environments so that crime opportunities are reduced. It has no effect on white collar crime. </li></ul>
  • 21. REDUCTION OF CRIME THROUGH (E/S) <ul><li>Increased perpetration time – more difficult to commit crime </li></ul><ul><li>Increased detection time – enhanced by lighting, landscaping, etc. </li></ul><ul><li>Decreased reporting time – more observation by many people </li></ul><ul><li>Decreased police response time </li></ul>
  • 22. Defensible Space Concept <ul><li>Territoriality – attitude of maintaining perceived boundaries. Outsider quietly recognized, observed. </li></ul><ul><li>Natural Surveillance – ability of inhabitants to casually an continually observe public areas. </li></ul><ul><li>Image and Milieu – involve the ability of design to counteract the perception that the area is isolated and vulnerable to crime </li></ul><ul><li>Safe Area – high degree of observation by police </li></ul>
  • 23. RISK MANAGEMENT <ul><li>Next will will discuss the subject of risk. </li></ul>
  • 24. CATEGORIES OF RISK <ul><li>Personal </li></ul><ul><li>Property </li></ul><ul><li>Liability </li></ul>
  • 25. RISK ANALYSIS <ul><li>First tool is assessing risk. </li></ul><ul><li>PML – assesses vulnerability and responses to risk </li></ul><ul><li>1. Possible maximum loss – if target is totally destroyed or lost. </li></ul><ul><li>2. Probable maximum loss – is amount of loss a target is mostly likely to sustain </li></ul>
  • 26. ALE <ul><li>Annualized Loss Expectancy (ALE) – this formula is used specifically when doing a quantitative risk analysis – such as terminating if another generator should be added to the plan used when computing a return on investment (ROI) </li></ul>
  • 27. Crime Risk Management <ul><li>Risk Avoidance </li></ul><ul><li>Risk Transfer ( Buying Insurance) </li></ul><ul><li>Risk Abatement (Reduction) </li></ul><ul><li>Risk Spreading </li></ul><ul><li>Risk Acceptance (Wish for the best) </li></ul>
  • 28. INSURANCE RATES <ul><li>Insurance rates are dependent on two variables: </li></ul><ul><li>1. Frequency of claims </li></ul><ul><li>2. Cost of each claim </li></ul>
  • 29. BONDS <ul><li>BOND – Legal instrument where one party agrees to indemnify another party if oblige incurs a loss from the person bonded. </li></ul><ul><li>Type of Bonds: </li></ul><ul><li>1. Fidelity Bond – if bonded employee after investigation to limit risk, violates the trust, the insurance indemnifies the employer. </li></ul><ul><li>2. Surety Bond – Failure to perform as agreed (Contract Bond) </li></ul>
  • 30. INTERNAL THREATS <ul><li>Next we will discuss internal threats and losses. </li></ul>
  • 31. PREVENTION FROM INTERNAL THREATS <ul><li>Internal theft is the greatest on going threat to business. </li></ul><ul><li>It is difficult to obtain accurate statistics as to shrinkage attributable to employee theft. </li></ul><ul><li>Internal losses occur by several methods: </li></ul><ul><li>1. Pilferage – stealing in small quantities over a long period. </li></ul><ul><li>2. Embezzlement – taking money/property entrusted to their care. </li></ul><ul><li>3. Shrinkage – loss of inventory through any means. </li></ul>
  • 32. WHY EMPLOYEES STEAL <ul><li>Personal Problems </li></ul><ul><li>Environmental Influences </li></ul><ul><li>Rationalization </li></ul>
  • 33. THEFT TRIANGLE <ul><li>Motivation ( Desire or Need) </li></ul><ul><li>Rationalization </li></ul><ul><li>Opportunity </li></ul>
  • 34. DANGER SIGNS <ul><li>Counter productive behavior </li></ul><ul><li>Conspicuous Consumer </li></ul><ul><li>Financial Irresponsibility </li></ul><ul><li>Financially squeezed employee </li></ul>
  • 35. Management Countermeasures <ul><li>Internal Controls / Separation of responsibility </li></ul><ul><li>Auditing (Inspect what you expect) </li></ul><ul><li>Management Support </li></ul><ul><li>Policy and Procedural Controls </li></ul><ul><li>Hotline </li></ul><ul><li>Thorough Investigation </li></ul><ul><li>Confrontation with employee suspect </li></ul><ul><li>Prosecution </li></ul>
  • 36. PHYSICAL COUNTERMEASURES <ul><li>Access control </li></ul><ul><li>ID systems </li></ul><ul><li>Lock / Key Controls </li></ul><ul><li>Alarms </li></ul><ul><li>CCTV </li></ul><ul><li>Safes / Vaults </li></ul>
  • 37. SAFETY <ul><li>Lets review some LP safety issues. </li></ul>
  • 38. SAFETY AND LP <ul><li>Unsafe acts cause 85% of all accidents, unsafe conditions cause the remaining 15%. </li></ul><ul><li>Incident – is anything from serious injury to a breakdown in quality control </li></ul><ul><li>Accident – is an undesired event resulting in physical harm to a person or damage to property. </li></ul>
  • 39. ACCEPTABLE WAYS TO REMEDY ACCIDENTS <ul><li>Constant inspections </li></ul><ul><li>Job safety analysis </li></ul><ul><li>Early discovery of unsafe conditions </li></ul><ul><li>Identification of hazards </li></ul><ul><li>Investigation of all accidents and near misses as soon as possible </li></ul>
  • 40. HAZMAT <ul><li>Hazardous Material Program: </li></ul><ul><li>1. Identify hazards that are present </li></ul><ul><li>2. Know how to respond to an incident </li></ul><ul><li>3. Set up necessary safeguards </li></ul><ul><li>4. Employee training </li></ul><ul><li>5. MSDS (Right to Know Program) in place </li></ul>
  • 41. PLANNING AND BUDGETS
  • 42. PLANNING <ul><li>Planning – designed to fulfill organizational goals / objectives. Can be: </li></ul><ul><li>Simple </li></ul><ul><li>Complex </li></ul><ul><li>Short term </li></ul><ul><li>Long term </li></ul>
  • 43. Budgets <ul><li>Top/down </li></ul><ul><li>Bottom/ up </li></ul><ul><li>What is a budget – a plan stated in financial terms. </li></ul><ul><li>Types of budgets: </li></ul><ul><li>Line item – each item expressed by line </li></ul><ul><li>Program – expenses are appropriated for specific activities / program or project. </li></ul><ul><li>Capital Budget – infrequently purchased / high dollar items </li></ul>
  • 44. A BUDGET REQUIRES ….. <ul><li>A manager to operate the plan in three dimensions: </li></ul><ul><li>1. The operation /project must unfold as planned. </li></ul><ul><li>2. The operation / project must take place when planned. </li></ul><ul><li>3. It will not exceed the planned costs. </li></ul>
  • 45. BUDGET COSTS <ul><li>Budget costs are classified under one three categories: </li></ul><ul><li>1. Salary expenses </li></ul><ul><li>2. Sundry expenses – all non – salary expenses </li></ul><ul><li>3. Capital Expenses – which are physical improvements, physical additions or major expenditures for hardware, generally considered one time expenses. </li></ul>
  • 46. Thank You <ul><li>I hope you found this LP review helpful. </li></ul><ul><li>I wish you all the best when you are taking your exam. </li></ul>

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