A loss prevention officer may monitor customers for signs of theft.
Businesses buy insurance and invest in other ways to mitigate and overcome losses from property damage, theft, and fraud. However, the best way to deal with these losses is to avoid them. The practice of loss prevention management is about understanding what specific vulnerabilities a business has and then trying to prevent them from happening or reduce their impact, given the resources and nature of the business. There are many different forms of loss prevention management, such as asset protection for retail organizations, loss prevention for clearing companies, and loss control for facilities and other property.
Loss prevention management staff may handle cases of embezzlement.
Property loss prevention involves the proper engineering and construction of buildings so they are not damaged by hazards such as fires, hurricanes, earthquakes, and snowstorms. In the event of hurricanes, for example, the roof of a building can be reinforced so that strong winds do not blow it away and windows can be protected from being broken by debris. Loss prevention management for earthquakes, on the other hand, may involve adequately protecting a building’s shelves and other interior contents, while ensuring that the structure can withstand ground vibration due to an earthquake.
Retail loss prevention can focus on preventing employee theft.
In the workers’ compensation framework, loss prevention management is about creating a safer work environment so that employees are not injured while working. This may simply be 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 mean teaching employees the proper ergonomics to lift packages correctly and operate machines safely. Another aspect of managing loss prevention for workers’ compensation is creating a culture of safety within the organization, from executives to hourly employees.
Retail loss prevention, also known as asset protection, begins by trying to stop employee theft, shoplifting, embezzlement and fraud. When a loss occurs, this type of loss prevention management takes the form of a private investigation. Loss control professionals are responsible for managing store safety 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, check fraud, margin loss, and boyfriend. The latter occurs when employees find competitor prices that match customers’, make special offers to friends and family, or reduce fees associated with deliveries and warranties.