The Top 7 LP Policies Retail

8/13/2019 The Top 7 LP Policies Retail

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The Top 7

Loss Prevention

Policies

you cant live without

(Retail)


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There is a saying that goes,

A verbal contract isnt worth the

paper its written on.

The same is true of verbal policies.

Without a clear written

policy and procedure,

over time employees

drift toward their own

way of doing things.

Written policy ensures a solid foundation to

grade compliance, identify training

opportunities, and detect dishonesty.

2- - - - Policy Myths - - - -

- - - The Top 7 Loss Prevention Policies - - -

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3/16

The retail industry reports that over

4 billion dollars a year is lost to

mistakes and errors.

Written policy ensures training and

guidelines to avoid these losses.

In addition, 40 to 50%

of all losses are the result

of internal dishonesty.

Written policy sets the baseline for recognizingpotential dishonest activities.

- - - An Open Door for Loss - - - - 3


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4/16

Most functions of a business include a set of

procedures.

We have a manual that

explains how to process a sale onthe POS, or how to turn on and off the

alarm.

A policy describes the dos and dont withinmany of these procedures.

The rules

surrounding the verificationneeded to process a refund

- - - - Procedures are not - - - - -

necessarily policies

4


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5/16

If you dont have written policies, then you

should begin by creating the most basic.

You should consider how to create aprocess that protects from mistakes or one

that will help identify dishonesty.

A refund requires management

verification to ensure it is legitimate and to

ensure the proper procedure (collection of

customer information, original transactionnumber, etc.) were followed

- - - - - - Where to begin? - - - - - 5


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6/16

Most retail operators have far more

than 7 policies.

These, however, represent

areas where the highest loss

occurs and where Loss Prevention

professionals spend the majority

of their time resolving losses.

- - - - - - Is 7 enough? - - - - - 6


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7/16

Waste

High Risk Transactions

POS Audit and Authorization

Conduct

Deposit

Damages

Access and Egress

7- - - - The 7 Critical Policies - - - -

1

2

3

4

5

6

7


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8/16

Why it is important

Refund fraud continues to be one of the

most costly methods of employee theft. It

has the double impact of loss of cash and

inflating book inventory.

What to consider

In the world of single coverage, our

policy has to account for on duty alone

scenarios. We also should build our policy

based on the advantages anddisadvantages of our Point of Sale system.

What it should include

We should detail what information is

requires (name, SKU, receipt), who canprocess (by position, and what

verification is required (signatures,

witness, visual inspection of product)

8- - - - - Refunds - - - -


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9/16

Why it is important

High Risk transactions include no-sales, voids, employee discounts, and

paid-outs. These methods are theprimary ones used for front-end

dishonesty.

What to consider

POS limitations and abilities is a criticalfactor. Also an ability to track drawer

openings and audit these transactiontypes.


Include authorization levels,

signatures, reason codes and registerkey control

9- - - - High Risk Transactions - - - -


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10/16

Why it is important

Although business today experiences

more electronic than cash payment,

mistakes and theft still occur in areas of

cash control

What to consider

Much like the previous policies, the

policy has to contemplate coverageissues and tracking ability.


A clear guideline on authorization, cash

auditing, and drawer opening policies.

10- - - - POS Audit & - - - - -

Authorization


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11/16

Why it is important

The culture of a location determines

things like integrity, error causing short-

cuts, and socially acceptable behavior. A

code of conduct provides a clear

expectations of unacceptable behavior

and the potential response from the

company.

What to consider Your companys cultureand

expectations


Include a list of expectations/outcomes

related to borrowing money violating

policies like discounts, and theft.

11- - - - - Code of Conduct - - - -


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12/16

Why it is important

Deposit theft and loss is rare, however,

when they occur these events are

difficult to resolve. A policy provides a

record to assist the resolution and alsoits presence deters loss.

What to consider

Coverage, distance to the bank,

reconciliation process, and presenceof a location safe.


Include a deposit log, verification

process, verification signatures, and

back records reconciliation

12- - - - - Deposits - - - -


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13/16

Why it is important

A lack of control can result in inventory

errors and use of damages to mask

theft

What to consider

The number of damages in your

business, storage space, and your

return to vendor frequency.


Include guidelines for authorization,

logging and tracking, and storage

requirements

13- - - - - Damages - - - -


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14/16

Why it is important

In order to resolve loss and ensure

employee safety, we need to place

restrictions on non-employee access.

What to consider

Coverage, insurance restrictions, hours

of operation.


Procedures for entering and exiting the

location, restriction of non-employees

from stockrooms and after hours, any

bag check requirements.

14- - - - - Access & Egress - - - -


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15/16

The 7 policies set a foundation for good loss

prevention practices. They provide a base line

for identifying compliance, training and

dishonesty issues.

If you already have policies you should review

them to ensure that they still match any

operational environment changes.

15- - - - - Summing Up - - - -


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16/16

16- - - - More Information - - - - -

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The Top 7 LP Policies Retail