Nationwide retail theft, deterrents and the determination of risk Essay

Nationwide retail theft, deterrents and the determination of risk - Essay Example The paper tells that the current economic environment makes effective loss prevention more important than ever. The worldwide economic environment has been struggling in recent years as a consequence of a global economic crisis. This has resulted in the decrease in available finances for many people and markets. The financial crisis has had widespread effects across all sectors of the economy. For example, consumers have been faced with a lower amount of income, decreased job availability and an increased cost of living, while employers have found it necessary to lay off staff and tighten their margins to ensure that they remain profitable. Throughout the time the United States economy has suffered significantly, with the situation for many people across the country becoming desperate. Although the economy is slowly recovering, many people still struggle in obtaining the necessities required to survive. One consequence of this is that rates of theft have significantly increased and m any stores have less available staff to monitor security. A second effect of this is that it is becoming increasingly important for companies to limit their spending and increase revenue. Loss prevention significantly increases the company income, as the amount of money that is lost through theft can be high. The use of security systems is especially useful in this area as they are able to significantly reduce the number of staff that are required for security, and often increase effectiveness also. Making these changes now is important, as there are concerns that the country will continue to struggle economically. There is little change in the job market, and many people continue to struggle financially. Regardless of whether the economic climate improves in the near future or remains difficult the need for loss prevention remains a priority for any retail business. Managing Theft There are two general approaches to managing theft within a store. They are not necessarily mutually e xclusive, but generally a store will focus on one of these while putting only a small amount of effort on the second. The first approach is the use of plans, procedures and philosophies in place which focus on apprehending thieves and prosecuting them. The second approach is to focus on preventing theft from occurring in the first place. Both aspects are important to the management of loss within a business, and they can co-occur within an organization. Businesses generally focus on one of these two approaches as they require substantially different methods and training. In addition, both approaches have significant financial cost. . Each approach has its benefits, and which is most efficient depends on the type of organization in which it is being applied and the socioeconomic environment in which the particular store is centered. The concept of a brand is important for organizations. Many