04/11/2019 Loss Prevention Qualified - Course 1 (US)

Notes: LPQ 101 - Foundations of Loss Prevention

A. Foundations of Loss Prevention

Why do so few individuals consider looking at Loss Prevention as their chosen profession when they
first begin their careers?
There are no defined academic pathway to loss prevention as a career. It is not considered a specialised job
despite the incremental use of technology and procedures.Those inclined towards such pursuits generally join
the Police or the military as loss prevention does not enjoy similar glamour and seems ordinary and non exciting.

What is a career?
A career is an occupation which a person can undertake after required education and training. It should also
provide him/her equal opportunity to progress in their career.

B. Emergence As A Profession
How were the early years of the Loss Prevention profession typically viewed?
Loss Prevention was considered a necessary part of the infrastructure,however it was seen only to contribute to
the debit side of the balance sheet.Loss Preventions' contribution were expected to be in form apprehension of
shoplifters, prevention of theft/robbery. Its ability of contributing in avoiding shrinkage and preventing loss was
not known.

How was success typically measured in the early years of Loss Prevention?
Loss preventions was measured on basis of apprehensions and actual prevention of theft/robbery.

1) Transformation From a Reactive Force to a Proactive Asset

As the loss prevention ideology emerged as a viable weapon in the fight against shrinkage, how did it
change the approach to the program?
The realization that loss prevention can contribute positively towards the margin encouraged business owners to
invest in loss prevention technology and procedures. Loss prevention leadership took measures to give it a
proactive stance and explored a deterrence stance along with the prevention role.

a) Security vs. Loss Prevention vs. Asset Protection

What are some of the primary resources that the Loss Prevention profession is charged with protecting?
In the present day loss prevention is responsible for every aspect that may cause loss to the business namely;
merchandise, human resources, physical properties and structures, intellectual property, and any/all other
resources directly and indirectly related to the retail business. It is also expected to prevent loss of image.

As Loss Prevention began to evolve from a reactive approach to a proactive strategy, how did some of
our core responsibilities change?
Evolution of Loss prevention saw it adopt a greater role in the business. The loss prevention now was involved in
'preventing' the crime and this reason adopted a wholesome role in business operations. It was realized that
better operational practices, good customer relations were a force multiplier in resolving issues that fell to loss
prevention department. Loss prevention today influences every facet of business operations, in retail
merchandise positioning , lighting etc are all done in consultation with loss prevention.

How did the advent of the computer age impact the loss prevention industry?
The age of computer had a huge impact on the loss preventions' role within businesses . The data analysis is
able to identify losses,register a pattern and thereby help in designing the countermeasures. Computer based
technology helped loss prevention department to assist the store employees to design merchandise presentation
to discourage shoplifting, identify culprits etc.The audit process was speeded up to keep tab on
losses/shrinkages etc
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What led to the use of the term "Loss Prevention"?

The "Security" department today is not merely contributing a guard in front of the store. It provides solution to
avoid losses in each facet of the business operations. "It was seen as a means to reflect our evolving strategies,
sending the message that we served to prevent all types of losses and enhance the business plan." This wide
ranging role shift led to the adoption of the term 'Loss Prevention'

What is the role of Loss Prevention?

Loss Prevention today has gone beyond shrinkages. It today contributes in preventing loss to the business in any
form/aspect,it can be about brand name, intellectual property, litigation due non compliance etc.

b) Embracing New Roles and Challenges

�
What primary concepts do the lion s share of loss prevention responsibilities revolve around?
Loss Prevention has been largely defined by the practices and procedures adopted for prevention of loss,
protection of merchandise, training to counter threats with knowledge and technology.

What role is technology playing in driving new roles and responsibilities within the loss prevention
industry?
Technology is an integral part of loss prevention today,it has manifested itself by the integration of data
management tools, more complex reporting systems, and real-time analysis of critical business operations. This
has led to requirement of new skill set amongst loss prevention professionals to cater for the varied new
roles.Technology has also strengthened the criminals, whose methodology has become more sophisticated.

c) Comprehensive Training
How important are quality training programs to the development of a loss prevention career?
The action of loss prevention can adversely affect the business today as its actions impacts employees,
customers and the complete shopping experience. In view of the enormity of of its task loss prevention
professional should trained in their roles and responsibilities, in knowledge of new methods and practices, in the
handling of technology aiding their functioning.

Poorly trained individuals will fail to prevent the loss and also lose business due to unreasonable/non customer
friendly policies.

d) Establishing a Command Structure

Why did it become important to develop multi-layered Loss Prevention programs?

C. The Importance of Our Profession

1) What We Do

What are some of the contributions made by loss prevention that add to the success of an organization?
Apart from preventing loss by catching shoplifters and stopping dishonest employees, loss prevention contributes
by ensuring employee training and awareness to prevent loss, conduct audits to identify possible shrinkage,
carryout investigation to identify and apprehend culprits.

a) Employ Methods of Deterrence

In general terms, who typically has the greatest opportunity to steal from a retail organization?
The employees, who spend the greatest amount of time at the store have the greatest opportunity to steal from
retail organization.

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What are some of the more common methods that companies will use to reduce the opportunity for an
employee to become involved in dishonest activity?
The companies invest(training and education) in the employee and allows him/her to gain knowledge and
improve their self worth, also give them an understanding of loss and damage to business to such loses.
Companies also uses technology like scanners , CCTV and instant communication device to discourage
employees to entertain any thoughts of dishonest activity.

b) Conduct Investigations
What is the purpose of an investigation?
The purpose of investigation is two-fold, firstly to identify the culprit and ensure he is brought to book; secondly,
to identify procedural lapse that caused it and to suggest measures to address it.

How do we determine the merits of an investigation?

An investigation should identify the culprits with adequate documentary evidence. The investigation proceedings
and the evidence should be recorded and arranged in a logical manner so as to be relevant to legal or
supervisory body which considers it in future.

c) Perform Apprehensions
What are the general steps that must be followed in order to make a shoplifting apprehension?
The shoplifting apprehension should be preceded by the continuous observation of the suspect from - the entry,
removal of merchandise from the display, storage of merchandise with intent of stealing/concealing, continuous
observation till the suspect crosses the last payment point or actually exits without payment.
The apprehension can be made at any point beyond the last payment counter and immediately beyond exit
point.

d) Interaction with Law Enforcement Agencies

What are some of the more common circumstances that will lead to contact with our various Law
Enforcement agencies?
As loss prevention professionals we come into contact with Law Enforcement;
a) When we decide to prosecute a shoplifter,a dishonest employee.
b) When dealing with special investigation.
c) When reporting armed robbery, criminal incidents or potential criminal incidents.
d) When investigation is assisted by the local law enforcement due to complexity or severity of the crime.

Who holds the responsibility for making an arrest following a shoplifter incident?
Only the law enforcement agents are authorised to carry out an arrest.Loss Professional can hugely aid it by
carrying out apprehension and paper work as per the legal requirement.

2) Crossing Into New & Non-Traditional Markets

a) Loss Prevention Retailer Categories

Describe the five primary subcategories for Loss Prevention retailers �
1. Department Store / Big Box Retailers 2. Specialty Retailers 3. Category Killers 4. Convenience Stores 5.
Grocery Stores 6. Restaurants/Fast Food 7. Drugstore/Pharmacy Retailers

b) Specialized Loss Prevention Professions

Describe some of the more specialized retail functions where loss prevention professionals can pursue
career options...
Loss prevention has branched out as per the varied form of retail business and its services. E-Commerce/Retail
is growing at a fast pace with its unique requirements with regards loss prevention. These requirements include
supply chain loss prevention, Information and data protection. It has also paved way for business which provide
protection services, special investigation et.

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Businesses also evolved to provision for specialised internal investigation team, audit team, restitution and
recovery teams. The value brought in by the loss prevention has led businesses to establish a quality training set
up to ensure that its store employees and loss prevention team.

3) Impact On The Bottom-Line

�
In simple terms, how is an organization s profit determined?
Total Income minus Total expenses (to include, taxes and losses).

What are Fixed costs?

This the cost incurred by the business to establish the business and to keep it going on daily basis, irrespective
of the sales figures. As the name suggest it remains fixed for a business over a given period of time

What are Variable costs?

Variable cost are the cost incurred by the business regularly, to keep it running. Variable cost increases with sale
and reduced when sales are low..

a) Our Importance to the Organization

�
How has Loss Prevention s transformation from a reactive presence to a pro-active force affected our
impact on profits?
Proactive loss prevention aimed at measures to reduce the shrinkages, the loss prevention procedures were
measured against the objectives. The high risk area was identified; staff training and loss prevention measures
was designed to address the problem and the reduced shrinkages was directly reflected on the margin/profits.

What are some of the keys to establishing an effective loss prevention culture?
Establishing effective loss prevention culture would involve improving employee awareness, providing relevant
training,encouraging anonymously reporting losses by providing incentives, targeting high shortage or high risk
areas with enhanced resources, upgrading the physical security components of a facility, and focusing on
receiving and distribution channels.

Generally speaking, what contributed to loss prevention being excluded from daily business operations?
How can we continue to change this perspective?
Loss prevention was unable establish its paramount position in the business establishments,due the lack of
understanding regarding the role of this department. The management were unable to synchronise the task of
loss prevention with other departments effectively.The failure of other departments to understand the role of Loss
prevention and vice-versa also led to the poor utilization their skill set efficiently.

To change this perspective required training ,education and a clear minded leadership. There is a requirement of
clear communication between all the stake holders and a cooperation in working towards a common goal.

b) Our Importance as a Profession

What is a profession?
Any task/job requiring a set of skill to fulfill it and is carried out by individuals generally for fixed/variable
information.

What do we mean when we say that retail shrink represents lost opportunity?
A retail shrink is a loss at two levels; firstly, the loss of an item due to theft or similar activity leads to loss asset
cost, it also includes the loss caused by the'Lost Opportunity' as the item cannot be sold and the profit that may
have accrued.

How can each of us help to build the credibility of the loss prevention industry?

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For the loss prevention department to function effectively it is critical for the LP personnel to understand the
functioning of other departments. Loss Prevention should understand the task and identify the lacuna, the
solution provided should be practical , logical and also easily implementable. The loss prevention measures
should help the department in achieving its original aim.

What are some of the factors that top quality candidates consider when seeking a new position?
1) Competitive Compensation
2) Reputation of the company
3) Opportunity for advancement
4) Professional growth opportunities (education & training)
5) Equal opportunities regardless of gender, race, religion, age or ethnicity
6) The value that the opportunity brings as a building block for other personal and professional growth
7) Other factors that may be important to the particular candidate

What are some of the most important qualities that we should look for in a potential Loss Prevention
candidate?
Character
Intelligence
Enthusiasm
A willingness to listen
A willingness to learn
An open mind
Maturity
A positive attitude
A strong work ethic
Leadership
Respect
Strong communication skills
Strong interpersonal skills
High integrity

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