Loss Prevention Cpp Study Group Presentation

8/22/2019 Loss Prevention Cpp Study Group Presentation

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CPP REVIEW, TODAYS LOSSPREVENTION

JACK TERNAN, CPP

Zone Loss Prevention ManagerTuesday Morning Inc.

ASIS CPP Review 8/14/01


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HISTORICAL OVERVIEW

First codification of law1800 BCHammurabis Code

Modern Police RootsSir Robert Peelin 1829COP, Crime Prevention first started

1980, Association of Chief of Police, made crimeprevention as a standard police function.

CPOCrime Prevention Officera publicservant with police powers.

LPOLoss Prevention Officerprivate sectorderiving authority from an employer.


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LP FOUNDATION TOOLS

Five tools that form the foundation of a

Loss Prevention program.


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1STLP TOOL

RISK ANALYSISEstimating expected

loss from a specific threathas 3 steps:

1. Loss Prevention Survey

2. Identifying vulnerabilities

3. Determining probability / frequency /costs

Process leads to the Loss Prevent Profile.


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LOSS EVENT PROFILE

LOSS EVENT PROFILE:

1. Type of Risk

2. Probability of Event

3. Criticality of Event


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2ND LP TOOL

PLANNINGResults in a design forreaching objectivesmust fulfill

organizational goalsRespond to:

1. What is cost?

2. Is it practical?3. Is it cost effective?

4. Will Management support strategy.


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3RD LP TOOL

EVAULATIONA critical tool once

program is implemented. Ways to do this:

1. Pre test / Post test design

2. Experimental / Control Group Design


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4THLP TOOL

RESEARCHFour basic steps:

1. Statement of the problem

2. Hypothesis

3. Testing

4. Conclusion


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5THLP TOOL

STANDARDSPromotes uniformity;

E.G., UL, NFPA, OSHA


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CRIME ANALYSIS AND LP

Crime analysis, a systematic approach to studyingcrime problems, collects, categorizes and

disseminates accurate, timely and usefulinformation to line personnel.

Four specific steps of crime analysis:

1. Data collection

2. Analysis3. Dissemination

4. Feedback


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LP MANAGER

Lets say something about the LP Managers

role.


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ROLE OF LP MANAGER

Reflects needs/objectives of upper

management and needs to :

1. Establish Priorities

2. Develop Written Polices

3. Form integrated management teams


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KEY QUESTIONS

Does LP Manager have:

1. Upper Management Support

2. Adequate Budget

3. Appropriate Level of Authority


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CRIME PREVENTION


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FOUR DS OF CRIME

PREVENTION

DETER - criminal attacks

DETECTattacks that occur

DELAYattack to allow time for response

DENYaccess to selected targets


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ENVIRONMENTAL DESIGN

Environmental design, or physical planning,

is an approach to crime prevention in

residential and commercial areas bycoordinating efforts of architects, loss

prevention practitioners, and police.


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CPTED

Crime prevention through environmental

design (CPTED) advocates that the proper

design and effective use of the buildingenvironment leads to a reduction in crime

and the fear of crime.


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CPTED 3 BASIC STRATEGIES

Natural access control

Natural surveillance

Barriers (Territoriality)


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DEFENSIBLE SPACE

Written by Oscar Newman

Strategies from a New York housing

project. Essence of the concept is that better

residential security can be brought about

through environmental and architecturaldesign coordinated with crime preventionmethods.


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ENVIRONMENTAL SECURITY

(E/S)

Is an urban planning and design process

which integrates crime prevention with

neighborhood design and urbandevelopment.

The basic premise of (E/S)design and

redesign of urban environments so thatcrime opportunities are reduced. It has no

effect on white collar crime.


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REDUCTION OF CRIME

THROUGH (E/S)

Increased perpetration timemore difficult

to commit crime

Increased detection timeenhanced by

lighting, landscaping, etc.

Decreased reporting timemore

observation by many people

Decreased police response time


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Defensible Space Concept

Territorialityattitude of maintaining perceived

boundaries. Outsider quietly recognized, observed.

Natural Surveillanceability of inhabitants tocasually an continually observe public areas.

Image and Milieuinvolve the ability of design to

counteract the perception that the area is isolated

and vulnerable to crime

Safe Areahigh degree of observation by police


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RISK MANAGEMENT

Next will will discuss the subject of risk.


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CATEGORIES OF RISK

Personal

Property

Liability


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RISK ANALYSIS

First tool is assessing risk.

PMLassesses vulnerability and responses

to risk

1. Possible maximum lossif target is

totally destroyed or lost.

2. Probable maximum lossis amount of

loss a target is mostly likely to sustain


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ALE

Annualized Loss Expectancy (ALE)this

formula is used specifically when doing a

quantitative risk analysissuch asterminating if another generator should be

added to the plan used when computing a

return on investment (ROI)


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Crime Risk Management

Risk Avoidance

Risk Transfer ( Buying Insurance)

Risk Abatement (Reduction)

Risk Spreading

Risk Acceptance (Wish for the best)


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INSURANCE RATES

Insurance rates are dependent on two

variables:

1. Frequency of claims

2. Cost of each claim


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BONDS

BONDLegal instrument where one party agreesto indemnify another party if oblige incurs a lossfrom the person bonded.

Type of Bonds:

1. Fidelity Bondif bonded employee afterinvestigation to limit risk, violates the trust, the

insurance indemnifies the employer.2. Surety BondFailure to perform as agreed(Contract Bond)


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INTERNAL THREATS

Next we will discuss internal threats and

losses.


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PREVENTION FROM

INTERNAL THREATS

Internal theft is the greatest on going threat tobusiness.

It is difficult to obtain accurate statistics as toshrinkage attributable to employee theft.

Internal losses occur by several methods:

1. Pilferagestealing in small quantities over a

long period.2. Embezzlementtaking money/propertyentrusted to their care.

3. Shrinkageloss of inventory through any

means.


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WHY EMPLOYEES STEAL

Personal Problems

Environmental Influences

Rationalization


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THEFT TRIANGLE

Motivation ( Desire or Need)

Rationalization

Opportunity


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DANGER SIGNS

Counter productive behavior

Conspicuous Consumer

Financial Irresponsibility

Financially squeezed employee


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Management Countermeasures

Internal Controls / Separation of responsibility

Auditing (Inspect what you expect)

Management Support

Policy and Procedural Controls

Hotline

Thorough Investigation Confrontation with employee suspect

Prosecution


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PHYSICAL

COUNTERMEASURES

Access control

ID systems

Lock / Key Controls

Alarms

CCTV Safes / Vaults


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SAFETY

Lets review some LP safety issues.


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SAFETY AND LP

Unsafe acts cause 85% of all accidents,

unsafe conditions cause the remaining 15%.

Incidentis anything from serious injury to

a breakdown in quality control

Accidentis an undesired event resulting in

physical harm to a person or damage toproperty.

ACCEPTABLE WAYS TO


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ACCEPTABLE WAYS TO

REMEDY ACCIDENTS

Constant inspections

Job safety analysis

Early discovery of unsafe conditions

Identification of hazards

Investigation of all accidents and nearmisses as soon as possible


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HAZMAT

Hazardous Material Program:

1. Identify hazards that are present

2. Know how to respond to an incident

3. Set up necessary safeguards

4. Employee training5. MSDS (Right to Know Program) in place


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PLANNING AND BUDGETS


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PLANNING

Planningdesigned to fulfill organizational

goals / objectives. Can be:

Simple

Complex

Short term

Long term

B d


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Budgets

Top/down

Bottom/ up

What is a budgeta plan stated in financialterms.

Types of budgets:

Line itemeach item expressed by line

Programexpenses are appropriated for specificactivities / program or project.

Capital Budgetinfrequently purchased / highdollar items


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A BUDGET REQUIRES ..

A manager to operate the plan in three

dimensions:

1. The operation /project must unfold as

planned.

2. The operation / project must take place

when planned.

3. It will not exceed the planned costs.


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BUDGET COSTS

Budget costs are classified under one three

categories:

1. Salary expenses2. Sundry expensesall nonsalary expenses

3. Capital Expenseswhich are physical

improvements, physical additions or majorexpenditures for hardware, generally considered

one time expenses.


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Thank You

I hope you found this LP review helpful.

I wish you all the best when you are taking

your exam.

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Loss Prevention Cpp Study Group Presentation

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