Article
Loss Prevention Assessment - A High Value Audit
August 6, 2008
•Loss Prevention Assessment - A High Value Audit
By Protiviti Inc.
Loss from theft, shortage control, procedural error, underreporting of sales and brand degradation is an unnecessary drain on corporate profitability. In 2006, losses to retailers were estimated to total $40.5 billon annually, representing 1.57 percent of sales, according to The National Retail Security Survey conducted by the University of Florida. Loss prevention (LP) functional expertise and an understanding of performance indicators allows for optimization in the allocation of resources, improved return on investments and increased profitability.
We have specifically designed a High Value Audit to address LP risks. This comprehensive assessment reviews all areas contributing to loss, including theft, poor controls, systemic flaws, franchise underreporting and training deficiencies, in order to develop a customized remediation strategy for each identified exposure. High Value Audit steps include:
- Critical assessment of loss results against identify trends and root causes.
- Development of strategy and resource deployment.
- Comparison of current execution against leading industry practices.
- Customization of predictive loss indicator report utilizing all your loss data, such as cash shortages, discount and turnover percentages, and dishonest associate case closures. Weighted factors create a score for each unit and this benchmarking provides a monthly measurement of your program's impact.
- Assessment of the overall effectiveness of LP-related programs, such as pre-employment screening, civil recovery, awareness and training.
- Insight into savings opportunities and recommendations to best protect your assets within your budgetary constraints.
- Identification of remediation strategies for areas that could lead to liability.
•Loss Prevention Assessment - A High Value Audit
