The threat of losses in a company can come from both external motivation and internal factors. It is, therefore, prudent that a firm analyzes the danger from its unique perspective to understand where it is more likely to lose from and allocate more resources to it to mitigate any potential damages.
Homes are vulnerable to natural threats such as wind, fire, and water among other natural means. Risks from these natural sources can often or at times be managed by risk transfer activities such as taking insurance covers on such threats while, in other cases, homeowners can manage the threats by modifying the environment in which they reside in.
One of the unique feature of this industry is that it is a privately-owned company providing services to the public, a great deal of its infrastructure is centralized, and many of its components are difficult to secure. Thus, it is a higher duty to the public to ensure that its security is fortified and the industry needs to have effective contingency and safety measures.
The hospitality industry faces external threats such as theft, burglary, prostitution, and drug peddling. Guests can also steal stuff from the hotels which include ashtrays, towels, souvenirs, and others. If such incidences are not prevented, the hotels will lose a lot of assets, hence jeopardizing their profit-making capacity.
There is the Safe Port Act which ensures that all the cargo that is coming from foreign ports are taken through x- rays to guarantee that there are no contraband goods. The C-TPAT is also another law that involved the private sector and the government in coming up with trusted traders. This way, the products coming into the US would not be harmful to the public.
C-TPAT refers to the custom-trade partnerships against terrorism. This provides certification to companies to ensure that the government can trust the company as a trader and, thus, easing the way the company does its business. By getting the certification, a corporation is, therefore, recognized as a trusted dealer in the market.
These places have a variety of advanced tools for security screening. Containers are monitored and tracked by the use of GPS and RFID tracking. Cargos are also x-rayed or scanned for radiation material to guarantee that they are safe for entry into a territory.
Shrinkage refers to the reduction of inventories which are not accounted for through sales or any other legitimate activities. One way of preventing this shrinkage in the form of internal theft is through the establishment of proper pre-employment procedures for screening strict methods for cash handling and refund policies.
Civil demand is a process where merchants can petition for the payment for the damage or loss in addition to other costs which are related to theft under the threat of civil action if the person refuses to pay. Civil recovery, on the other hand, is a process where merchants can seek financial compensation for their losses through the civil court if the person does not honor the public demand.
The best shoplifting prevention strategies include detection and deterrence by the use of proper merchandise display, surveillance equipment, fitting and package room inspection, well-enforced refund policy, alarms and locking devices. These will be done while considering the people who continuously use or have access to the buildings many times a day or weekly.