8/13/2019 The Top 7 LP Policies Retail
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The Top 7
Loss Prevention
Policies
you cant live without
(Retail)
8/13/2019 The Top 7 LP Policies 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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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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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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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
- - - The Top 7 Loss Prevention Policies - - -
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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
- - - The Top 7 Loss Prevention Policies - - -
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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
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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 - - - -
- - - The Top 7 Loss Prevention Policies - - -
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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.
What it should include
Include authorization levels,
signatures, reason codes and registerkey control
9- - - - High Risk Transactions - - - -
- - - The Top 7 Loss Prevention Policies - - -
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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.
What it should include
A clear guideline on authorization, cash
auditing, and drawer opening policies.
10- - - - POS Audit & - - - - -
Authorization
- - - The Top 7 Loss Prevention Policies - - -
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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
What it should include
Include a list of expectations/outcomes
related to borrowing money violating
policies like discounts, and theft.
11- - - - - Code of Conduct - - - -
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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.
What it should include
Include a deposit log, verification
process, verification signatures, and
back records reconciliation
12- - - - - Deposits - - - -
- - - The Top 7 Loss Prevention Policies - - -
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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.
What it should include
Include guidelines for authorization,
logging and tracking, and storage
requirements
13- - - - - Damages - - - -
- - - The Top 7 Loss Prevention Policies - - -
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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.
What it should include
Procedures for entering and exiting the
location, restriction of non-employees
from stockrooms and after hours, any
bag check requirements.
14- - - - - Access & Egress - - - -
- - - The Top 7 Loss Prevention Policies - - -
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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 - - - -
- - - The Top 7 Loss Prevention Policies - - -
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16- - - - More Information - - - - -
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