CPP REVIEW, TODAYS LOSS PREVENTION

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CPP REVIEW, TODAYS LOSS PREVENTION

• JACK TERNAN, CPP
• Zone Loss Prevention Manager
• Tuesday Morning Inc.
• ASIS CPP Review 8/14/01

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HISTORICAL OVERVIEW

• First codification of law 1800 BC Hammurabis
  Code
• Modern Police Roots Sir Robert Peel in 1829
  COP, Crime Prevention first started
• 1980, Association of Chief of Police, made crime
  prevention as a standard police function.
• CPO Crime Prevention Officer a public servant
  with police powers.
• LPO Loss Prevention Officer private sector
  deriving 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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1ST LP TOOL

• RISK ANALYSIS Estimating expected loss from a
  specific threat has 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

• PLANNING Results in a design for reaching
  objectives must fulfill organizational goals
  Respond 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

• EVAULATION A 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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4TH LP TOOL

• RESEARCH Four basic steps
• 1. Statement of the problem
• 2. Hypothesis
• 3. Testing
• 4. Conclusion

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5TH LP TOOL

• STANDARDS Promotes uniformity E.G., UL, NFPA,
  OSHA

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CRIME ANALYSIS AND LP

• Crime analysis, a systematic approach to studying
  crime problems, collects, categorizes and
  disseminates accurate, timely and useful
  information to line personnel.
• Four specific steps of crime analysis
• 1. Data collection
• 2. Analysis
• 3. 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
• DETECT attacks that occur
• DELAY attack to allow time for response
• DENY access 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 by coordinating 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 building environment 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 architectural design
  coordinated with crime prevention methods.

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ENVIRONMENTAL SECURITY (E/S)

• Is an urban planning and design process which
  integrates crime prevention with neighborhood
  design and urban development.
• The basic premise of (E/S) design and redesign
  of urban environments so that crime opportunities
  are reduced. It has no effect on white collar
  crime.

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REDUCTION OF CRIME THROUGH (E/S)

• Increased perpetration time more difficult to
  commit crime
• Increased detection time enhanced by lighting,
  landscaping, etc.
• Decreased reporting time more observation by
  many people
• Decreased police response time

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Defensible Space Concept

• Territoriality attitude of maintaining
  perceived boundaries. Outsider quietly
  recognized, observed.
• Natural Surveillance ability of inhabitants to
  casually an continually observe public areas.
• Image and Milieu involve the ability of design
  to counteract the perception that the area is
  isolated and vulnerable to crime
• Safe Area high 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.
• PML assesses vulnerability and responses to
  risk
• 1. Possible maximum loss if target is totally
  destroyed or lost.
• 2. Probable maximum loss is 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 analysis such as terminating 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

• BOND Legal instrument where one party agrees to
  indemnify another party if oblige incurs a loss
  from the person bonded.
• Type of Bonds
• 1. Fidelity Bond if bonded employee after
  investigation to limit risk, violates the trust,
  the insurance indemnifies the employer.
• 2. Surety Bond Failure 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 to
  business.
• It is difficult to obtain accurate statistics as
  to shrinkage attributable to employee theft.
• Internal losses occur by several methods
• 1. Pilferage stealing in small quantities over
  a long period.
• 2. Embezzlement taking money/property
  entrusted to their care.
• 3. Shrinkage loss 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.
• Incident is anything from serious injury to a
  breakdown in quality control
• Accident is an undesired event resulting in
  physical harm to a person or damage to property.

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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 near misses 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 training
• 5. MSDS (Right to Know Program) in place

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PLANNING AND BUDGETS
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PLANNING

• Planning designed to fulfill organizational
  goals / objectives. Can be
• Simple
• Complex
• Short term
• Long term

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Budgets

• Top/down
• Bottom/ up
• What is a budget a plan stated in financial
  terms.
• Types of budgets
• Line item each item expressed by line
• Program expenses are appropriated for specific
  activities / program or project.
• Capital Budget infrequently purchased / high
  dollar 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 expenses
• 2. Sundry expenses all non salary expenses
• 3. Capital Expenses which are physical
  improvements, physical additions or major
  expenditures 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.