Loss prevention exam 2
Loss prevention exam 2 retl 330
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This 12 page Class Notes was uploaded by Sarah Albert on Friday January 29, 2016. The Class Notes belongs to retl 330 at University of South Carolina taught by karen edwards in Spring 2016. Since its upload, it has received 119 views. For similar materials see Loss prevention in Retail at University of South Carolina.
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Date Created: 01/29/16
Managing a Process ● supply chain management involves planning and processing orders; handling, transporting and storing the products purchased, processed and or/ distributed, and managing the inventory of goods in an efficient and coordinated manner ● the primary objective is to fulfil business demands through the most efficient use of resources ● By maintaining effective control over inventories and distribution, the supply chain seeks to match and manage supply with demand to reduce costs, improve sales, and enhance company profitability. ● efficient and effective supply chain networks are necessary to successfully compete in the global retail market International security concerns ● when goods cross national borders ● customs is responsible for controlling the flow of goods into and out of our country ● inspections can cause substantial delays, product damage, spoilage of perishable items, and compromised shiping integrity that may lead to other loss prevention concerns CTPAT ● is a voluntary governmentbusiness initiative designed to build cooperative relationships that strengthen and improve both international supply chain and US border security. ● primary goal to stop abuses of commercial trading lanes by terrorists and others who seek to corrupt the process ● if a company has wellconceived and appropriate internal controls in place, they enhance the likelihood that their products will arrive on time, intact, and without dangerous or unwanted goods substituted for the products they expected to receive Risks in transit ● goods intransit are the most vulnerable to predation ● cargotheft incidents are often less likely to be given high priority when compared to many other types of crimes ● One of the biggest challenges involves organized retail crime (ORC) ● Thefts are often preplanned, highly coordinated, and wellexecuted In Transit methods ● many hijacking incidents occur while a driver is away from the truck ● hijackers will target a vehicle and forcibly enter the cab while the driver is in the vehicle ● coerce the driver into making an unplanned stop by having someone gain the driver's attention while they're driving. ● "grab and run." ● Thieves may tamper with trailer/carton seals and/or locks in order to conceal trailer breakins, or tamper directly with the container or trailer to commit these thefts ● ft. ORC groups have even used individuals that present themselves as legitimate drivers at shipping facilities, using counterfeit paperwork or even electronic shipment information in order to gain access to and make off with valuable loads. ● Effective strategies; include enhanced awareness efforts, improved response, advanced information and communication management, safety practices, employee screening programs, and robust training programs that provide necessary and appropriate information to our employees at every step along the way. Distribution centers risks ● the most likely way for theft activity to be successful in our distribution centers is if employees are involved ● involve collusion between multiple parties—especially between drivers and the employees that load and unload trailers. Merchandise within the distribution center is at its greatest risk when trucks are being loaded and unloaded ● Employees with ORC ties may simply hire into the company in order to gain access to merchandise, information, and opportunity. Existing employees may be recruited by ORC operations ● the theft or disclosure of information can be just as problematic. Risk vs reward ● An apprehended cargo thief, however, routinely faces very minimal incarceration and, more often than not, receives some form of probation ● very rarely confronted by law enforcement, who aren't made aware of what has occurred until long after the shipment is gone. A Rising trend ● in the past five years cargotheft crimes have risen over 150 percent and are still climbing Leakage and Fictitious Pickups ● Leakage occurs when a thief, which could even be one of your own employees, gains access to the contents of a trailer without your knowing about it. ● There are countless methods for gaining access to a trailer's contents and still making it appear as if the trailer doors were never opened after being closed for delivery. The easiest is simply to break the seal on a trailer. ● Fictitious pickup wouldbe thieves target a load they are interested in via any of the thousands of electronic "load boards" used by the shipping industry to advertise loads available for tender. Once the thieves select a load for theft, they begin the process of illicitly obtaining the identity of a real certified carrier ● The load is given directly to them. Only after the delivery has failed to reach the intended customer does the theft become realized. Impacts of Cargo loss ● cost of replacement ● customer retention Losing an existing customer because product they desired has been stolen ● new customers We essentially live in a society that demands immediate satisfaction. If you do not have an item in stock because it's been stolen from you, that customer will likely not wait for you to replenish your inventory ● lost sales Often these stolen products are reintroduced back into a secondary, albeit "grey market," supply chain, which erodes the chance for that same sale in your store. ● fraudulent returns ● Increased insurance Premiums ● Lost Margin The difference between the cost of the item and the retail value is not recovered by most insurance programs as they usually are designed to protect the shipper at cost. ● Loss of brand reputation Mitigating problems ● One of the first things to understand is what your exposure to theft actually is. ● There are several cargo theft "hot spots" in the United States that include certain areas within the states of California, Texas, Georgia, Florida, Tennessee, Illinois, and New Jersey ● Also you need to consider the current popularity of the particular commodities sold in your store. ● Many retailers are moving away from maintaining their own transportation to focus more on their core business of retailing. Those that do maintain their own fleets, however, have a distinct advantage; from screening and hiring their own drivers; to making investments in security devices to add to their fleet of tractors and trailers; to establishing proprietary intransit policies and procedures that your specific drivers use while transporting shipments. ● More often than not, however, many companies contract out their transportation services and do not, necessarily, have direct control over their transportation providers ● Some of these mandated bestpractice policies for thirdparty providers should include the following: ■ Requiring stringent background checks for all drivers and anyone who has visibility of your critical shipment information. ■ policyandprocedure manuals that include security requirements and can be randomly audited. ■ requiring drivers to produce a valid driver license and vehicle registration, upon demand, before any shipment loading can take place. ■ Making drivers aware of, and signing off on, your specific security requirements on each individual trip. ■ Ensuring that drivers know how to contact you in any emergency. ■ Obtaining drivers' contact information so that you can readily reach them at any time during a shipment trip. ■ Having drivers arrive with a fully fueled vehicle to minimize the number of stops necessary to make a delivery. ■ Ensuring drivers route themselves directly to the point of delivery, as safely and efficiently as possible within lawful bounds and with a minimum number of stops. ■ Requiring that there are no stops made within the first 200 miles of a delivery trip. ■ Installing GPS tracking technology on both tractors and trailers. ■ Instructing drivers to lock any unattended tractortrailer with the engine turned off. ■ Suggesting that trailers should be parked with their rear doors against a fixed object to prevent them from opening whenever possible. ■ Ensuring that loaded trailers are secured with a sufficient locking device at all times ■ Giving store security the right to inspect the driver's tractor and trailer for stolen merchandise before the driver leaves. Other area of opportunity ● noteworthy that thieves prefer to steal loads on Fridays, Saturdays, Sundays, and holidays, when drivers are often forced to leave loads unattended for long periods of time ● Thieves also use these weekend periods to steal shipments in the hope of delayed detection. ● There are now information resources available that can provide citylevel risk mapping based on historical data that can be used to set up a driver's particular route. ● The riskmanagement program will map out the driver's trip, highlighting areas that have been prone to cargo theft in the past. Using this type of analysis, you can create "no stop" zones based on the prior history of theft in that community. GPS technology ● the disabling of any visible GPS tracking technology on the tractor or the trailer. ● GPS tracking capability is probably the single greatest asset that exists in investigating and ultimately recovering stolen cargo. ● not not only serves in the recovery of full trailerload thefts, it also helps to identify potential acts of pilfering Changing of the times ● Virtually all major retailers now have someone responsible for supplychain risk analysis and security who is responsible for ensuring safe and secure delivery of their respective merchandise. Critical components to a supply chain security program Quick Fixes ● The employee allows access to the goods, while the driver has the means to transport the stolen freight unnoticed ● One key tool in combating this problem is the strict rotation of drivers through various delivery routes. This will ensure that the driver and store employee never have time in advance to set up a potential heist or the time to develop any type of personal relationship between one another. ● try to implement a procedure where the driver calls into his dispatcher and then his dispatcher contacts the store to notify them of his or her arrival. This will allow for an extra set of eyes while the driver makes his way in with the paperwork. ● Do not allow drivers to break seals no matter what the weather or circumstance, or to remain unattended in the receiving area. Theft Prevention Tactics ● Background checks ● locks ● gps tracking Partnering with law enforcement ● your relationships with law enforcement around the country will be your last chance for a successful recovery. ○ all drivers must pass background check ○ all loaded trailers must be locked and sealed at all times ○ any area with loaded trailers should have secure fencing ○ all facility entrances most have cctv systems ○ ask to see copies of training programs as it relates to the handling of your merchandise ○ drivers must never take a load home ○ you carrier needs to have someone dedicated to security that you can contact and work with in the event of emergency ○ ask to see their list of contacts ○ make sure “blind” release numbers are used for dispatching loads ○ several gps devices built in their equipment Critical strategy components ● Communication is critical components ● , law enforcement will recover a vehicle with all of the contents stolen long before the theft is reported to local agencies. While there is a definite need for timely cargo theft information sharing between law enforcement agencies, you can help the process by promptly reporting thefts to enforcement officials. ● Develop relationships with law enforcement in the areas where you operate ● Don't react passively to loss ● After a theft has been committed, have it thoroughly investigated rather than simply filing a police report or insurance claim. ● establish security standards for you and your partners Indicators of shoplifting Profiling shoplifters ● shoplifters come from all social, ethnic, and economic groups. young old poor rich employed or unemployed ● someone dressed in a winter jacket in the middle of summer, carrying an empty bag into the shop or entering an exclusive shop but not dressed to match the profile of customers that would ordinarily visit that shop are more likely to be looked upon as a suspect ● However, professional shoplifters are aware of these facts and try to blend in with the crowd. ● men shoplift more than women and those under the age of 21 have a slightly higher tendency to shoplift. Motive for shoplifting ● personal benefit ● peer pressure ● economic need ● physiological need ● mental illness Categorising shoplifters ● Amateur Shoplifter may not plan or intend on stealing. they may react to the opportunity or from peer pressure. often appear nervous or uneasy ● professional shoplifter highly skilled or difficult to detect polite, cautious, and well groomed. they will abandon a plan if they sense detection. tend to steal portable, compact, high value merchandise that are easy to sell on the internet, to a fence (receiver of stolen goods) or on the streets ● Juvenile Shoplifter Motivated by peer pressure or temptation juvenile shoplifters often shoplift luxury or trendy items for personal use. amateur and work in a group to create distraction. Juveniles are occasionally coached and directed by professionals and adults who exploit the fact that the penalty for a juvenile caught shoplifting is less severe. ● Kleptomaniacs are motivated by a psychological compulsion to steal. They steal due to the buzz/ excitement or because they view it as a challenge. ● vagrants and addicts are driven by the desire to survive or feed their habits. They often display erratic behaviour and may employ snatchandrun techniques. ● This group of shoplifters present the most safety concern to Loss Prevention (LP) personnel because of the irrational responses they may exhibit when confronted, particularly when they are under the influence of drugs or alcohol. They are the most dangerous as their physical need for drugs at the time, might result in desperate or unpredictable behaviour. Methods of Shoplifting ● If operating as a group, one person is used to distract LP personnel. When LP personnel focus on the person who appears and behaves like a shoplifter, the accomplice is able to carry out his/her act unnoticed. ● conceal stolen merchandise in bags, newspapers, shopping bags, purses, clothes fitted with large/deep pockets, sewn inner lining of a coat, hooks sewn into coats or underneath clothing. ● In changing rooms – They change to stolen clothes or shoes and leave their own clothing or put it over the stolen outfit. ● Female shoplifters carry merchandise between tights, bras or hidden under long skirts, or overcoats ● Some shoplifters wrap clothes around their legs, or tuck stolen items into socks ● Small items can be held in hands or gloves ● Boxes with fake bottoms or products stuffed into an emptiedout box ● in certain areas some shoplifters snatch merchandise and make a run for a waiting getaway vehicle. ● Pushchairs or car seats in the shopping trolley’s are also used to conceal stolen merchandise Times of shoplifting occurrences ● Individual shoplifters tend to steal at a particular time of the day / week ● tend to carry out their acts mainly when the store is full with shoppers, which is at lunch time, between 12:00 noon and 6.00pm and on weekends. ● for stores that operate a 24/7 service, shoplifters steal late at night or early in the morning. Indicators of shoplifting ● inappropriate clothing ● carrying empty bags, boxes, or umbrellas that could be used to conceal merchandise ● taking merchandise to secluded areas of store ● A nervouslooking person who constantly touches the back of his/her head, tugging at sleeves, or adjusting socks, breaks into cold sweat, is flushed and constantly moistening lips ● exceptionally fussy people who cannot seem to make up their mind about a purchase, or do not appear interested in purchasing an item they have been examining ● Someone who revisits the same area several times without making a purchase ● Constantly looking around instead of at merchandise on the shelf or in their hands ● Frequent visitor to a store but never making a purchase ● Lays a coat over merchandise in the trolley ● Walks into the stockrooms or behind counters or other places that are barred to the public ● An early or late night shopper ● Someone monitoring the movements of employees ● Appears startled when approached by employees and other customers ● Repeatedly sends employees away to look for products ● Someone who enters or leaves the store quickly ● Takes products into the toilet ● Someone looking up for security devices especially CCTV ● Removes product from packaging ● An unaccompanied juvenile during school hours Ways of preventing shoplifting ● The first step is to understand that shoplifters will operate in an environment they perceive as easy. ● ensure that your store is not perceived as an easy target ● trained employees Employees trained in shoplifting awareness are a more effective tool in combating shoplifting than any other tool a retailer can deploy. ● cctvshoplifters do to test whether your CCTV is being watched, they will steal things right under the camera. . If they get away with it the first time, they will know they are not being watched ● EAS tagging systems provide both physical and psychological deterrents to shoplifters ● Basically strategic merchandising is ensuring that merchandise is sufficiently secured without portraying a negative perception to legitimate customers. ● Exceptional customer serviceWhen approached by a member of the staff, a legitimate customer feels valued and appreciated. On the other hand a shoplifter may feel nervous and appear uneasy. The last thing a shoplifter wants is to be noticed. The legal pitfall for dealing with apprehended shoplifters ● step 1 The suspect must be seen to have entered an aisle and remove an item from the store display. There must be certainty that the suspect did not bring the item with them into the store. ● step 2 The suspect must be seen to conceal the item – The LP personnel should know what item and exactly where it is concealed. ● step 3 The LP personnel must maintain a constant and uninterrupted surveillance of the suspect from the time the item is concealed to the time the arrest is made. ● step 4 The LP personnel must observe the suspect walking out of the store without making any attempt to pay for the item. Apprehending shoplifters ● False arrest in retail cost retailers millions every year in lawsuits and legal fees. ● call for backup ● Observe the surroundings for any object that maybe used as weapon against you. If you have any reason to believe that a suspect is armed, do not attempt an arrest. ● Make sure you are certain that they have the merchandise before attempting an arrest. If in doubt; let them go. ● Introduce yourself and ensure you stand facing the suspect and you can see both hands. ● Try as much as possible to avoid any form of physical contact, if the need arises keep contact to a minimal. If you are not trained in physical intervention and it gets physical it is advisable to retreat. ● If the suspect denies carrying any merchandise, be specific; name the item that was taken from the shelf and describe where it is hidden. Speak in a confident nonconfrontational tone and do not intimidate, ridicule or embarrass the suspect. ● If the suspect attempts to walk away, reposition yourself and attempt to minimise the incident and consequences and persuade him/her to corporate. Use nonconfrontational hand gestures to guide the suspect in the direction you want him/her to go. ● remember the objective is to retrieve the stolen item, therefore if you can persuade the suspect to give you the item and leave, it might be the best option. If that does not work! Let them go. The reasons for recording shoplifting incidents ● shoplifting case might drag on for years at which time the employee involved might have left the organisation or their recollection of the incident might have faded. This renders it imperative that a report detailing each and every aspect of the incident is recorded right after an incident. ● the report needs to contain the reason for the initial suspicion, the actual theft, the stop process, time, date, witnesses and processing activities. If the shoplifter can be persuaded to make a written statement without duress, it is all the while better as this will make for a strong case in the event the case is taken to court. Probable Cause steps 1. You must see the shoplifter approach your merchandise ● This step prevents a common mistake that occurs when a customer brings an item into the store for comparison purposes or for a refund or exchange and does not check in at the service desk first. ● If you detain someone after seeing them replace their own merchandise into their pocket or bag, you could be subject to a false arrest claim even though it is a seemingly honest mistake. 2. You must see the shoplifter select your merchandise ● Store employees can misunderstand when they see a customer innocently put an item into their pocket or purse and not realize that the customer had brought the item into the store with them for comparison purposes. ● If you can positively and honestly state that you saw the shoplifter remove your merchandise from your display prior to concealing it, then you have a strong foundation for proof of shoplifting. 3. You must see the shoplifter conceal, carry away or convert your merchandise ● The important factor is to know what items go into the fitting room and what items don't come out in plain view. ● the fitting room must be checked beforehand to see if it is clear of merchandise and after the suspected theft exits to see that the missing items were not simply discarded. 4. You must maintain continuous observation the shoplifter ● Experienced shoplifters will try to dump the concealed merchandise, without your knowledge, if they believe they have been observed. ● The best approach, if you lose sight of a shoplifter, is to make your presence known to the shoplifter and give them a chance to dump your merchandise and leave your store without a word being said. ● Another technique is to make a storewide P.A. announcement for security to come to the department your shoplifter is standing 5. You must see the shoplifter fail to pay for the merchandise ● This is an important element to prove "intent" later in court, if necessary. ● Sometimes, shoplifters will go through the checkout line and pay for other items but not for the concealed item. It is important to observe that the concealed item is not retrieved and paid for at the checkout. ● verbally confirm with the cashier that the concealed item was not paid for either. ● if you don't litigation ● some shoplifters are clever and will purchase an item, obtain a receipt, and dump it in their car. Next they return to the store to steal the exact same item. If stopped they can produce a receipt and even get the cashier to swear the item was purchased. 6. You must approach the shoplifter outside of the store ● following this step eliminates all possibility that the shoplifter still intends to pay for the stolen product. ● When approaching a shoplifter outside of the store always have a least one more trained employee as a backup and witness. ● it is important to identify yourself clearly and your authority for stopping them. Penalties and statues for shoplifting in south carolina ● the maximum penalty for felony shoplifting in the Palmetto State is imprisonment for up to 10 years. Anatomy of Shoplifting ● defined by South Carolina law as taking unpaid merchandise from a store; removing or altering tags and attempting to purchase the altered item for less than its full value; or moving merchandise to a different container or different part of the store. ● An adult or minor can be charged with shoplifting if he conceals merchandise he hasn't paid for he does not actually have to leave the store with the stolen goods. ● In some cases, anyone who happens to be in the company of the shoplifter can also be charged Criminal Penalties ● The penalties for shoplifting in South Carolina range from a fine of up to $1,000 to prison time of up to 10 years. ● Misdemeanor shoplifting of merchandise valued at $2,000 or less is punishable by a fine up to $1,000, up to 30 days in jail or both. ● more than $2,000 is a felony. Crimes involving goods worth more than $2,000 but less than $10,000 are punishable by fines of up to $1,000, up to five years in prison or both. ● more than $10,000, the penalty can be as much as 10 years in prison. ● A shoplifter convicted of a third offense will be sentenced to incarceration for up to 10 years. ● n cases where the accused has a clean record, however, the state might offer him PreTrial Intervention. South Carolina's PTI program allows eligible defendants to participate in community service, counseling and drug testing in exchange for having their cases dismissed. Civil Litigation ● Regardless of whether an accused shoplifter is convicted of criminal charges, the victimized merchant can file a civil lawsuit seeking damages. ● the accused shoplifter is liable for the value of the merchandise plus penalties. Parents or guardians of minors who should have known about the crime are held liable for damages. Merchants defense ● shoppers accused of shoplifting sometimes turn around and sue the business ● South Carolina law has a builtin defense for merchants who stop a patron who is reasonably suspected of shoplifting. ● The merchant has a defense to his actions in court if the accused person was reasonably delayed for an appropriate amount of time and the merchant had probable cause to believe the accused person was shoplifting. ● if a shopkeeper detains a patron for an hour to investigate suspicious activity, he probably has a defense for his actions. But, if the shopkeeper keeps the person in the store for six hours, he could be liable for infringing on the freedom of the suspected shoplifter. How to press charges against shoplifters follow proper procedures so you can press charges ● Establish probable cause before detaining a shoplifting suspect. This includes noting the customer's approach, selection and concealment of an item from your store. ● Maintain visual contact with the suspected shoplifter. Wait until he or she fails to pay and leaves the store before your confrontation. ● Avoid chasing, using excessive force against or threatening the suspect in any way to minimize complaints against you or your business. If the rights of the accused are compromised, he or she can countersue. ● Keep the suspected shoplifter safe and secure while in custody. Take him or her to a private office to avoid public humiliation or a possible confrontation. ● Keep the stolen items and tag them as evidence. Press charges against shoplifter ● Call the local police and request they come and arrest a detained shoplifter. Be clear about your intent to press charges. ● Identify your role in the situation when the police arrive. Introduce any other store officials who witnessed the shoplifting incident or are otherwise involved. ● Complete a comprehensive report that provides specific details about the incident, including any comments the suspect made and the names and contact information of witnesses. ● Comply with the police as they conduct their investigation. They will question both you and the accused shoplifter. Answer their questions completely and accurately, and supply them with any evidence (such as stolen goods or security videos) that supports your case. ● Obtain the police report number. Every time the police respond to a call, they must file a police report. You will need this report number when you contact the authorities to follow up on the charges. Many Unhappy returns: retailers combat ‘Wardrobing” ● Merchants expect about five percent of all holiday returns to be fraudulent ● "wardrobing" the return of a used but nondefective item, such as clothing or electronics ● increasing percentage of return fraud is now being done with digital receipts, popular with many customers and being heavily promoted by retailers ● To combat this crime wave, many stores now require customers to show governmentissued identification, such as a driver's license, to make a return. That information may be entered into a database to target "serial" returners. Preventing Gift Card Fraud How are the losses occurring? ● several methods thieves, both internally and externally, are utilizing to commit gift card fraud ● Some methods are designed to actually obtain a stolen or fraudulent gift card, others methods like credit card and check fraud are used to obtain the gift card as the "merchandise". ● The cards can then be sold at online auction sites or on the street Protecting the Card ● . Pin numbers protected by scratch off labels deter the card from being manually utilized ● Encrypted magnetic strips can prevent card duplication. Deterring fraud at the point of sale ● Understanding how your point of sale issues, redeems and cashes cards and when the card is activated in your POS system can help you to determine various risks at your point of sale. Card activation ● Knowing when the card is activated at your point of sale can help determine your level of vulnerability to gift card fraud. ● Many retailers allow their cards to activate once scanned as an item for sale, prior to the transaction being tendered and complete ● "laundering" of a gift card ● possible post voiding of a gift card, or shutting down the register in the middle of a transaction after a gift card is activated. ● used by employees to steal from a retailer. Card display and handling ● cards are displayed in unorganized fashions or not properly maintained at the store, then it is for a customer to take several blank cards and duplicate them for fraud. ● Keeping gift cards in an area where they can be seen by employees will help to deter the theft of blank cards. Noticing missing sections of your gift card display is another indicator of concern. The inside factor ● Many retailers are finding out that their biggest gift card fraudsters are their employees. ● employees switching customer's gift cards with zero balance cards and using the customer card to purchase merchandise or sell is one of the known methods ● Make certain used gift cards are discarded properly and keep track of blank cards. How do they do it? ● the switch An employee receives a gift card as payment from a customer. The card after purchase still has a balance. The employee switches the card with a zero balance card lying by the register ● laundering An employee rings the purchase of a gift card on register #1 for $100. They complete the purchase, but do not put any money in the register (no customer is present). They go to register #2 and purchase two (2) $50 gift cards, using the gift card of $100 as tender. They then go back to register #1 and Post Void the original sale. ● Register shutdown An employee rings up a gift card and activates it at the point of purchase. Before tendering the transaction they unplug or conduct a hard shutdown of the register ● Stealing the numbers organized thieves will get their hands on the gift card numbers (collusion with employees) and replicate gift card "mag" stripes, thereby making a duplicate of the gift card. Using it or selling it quickly, the card gets into play and the first to use it is normally the thief. ● "customers" stealing blank cards off display, taking them out of the store, cloning the cards and then returning the original cards to the store. The "customer" then uses an IVR or Web system to continuously monitor the balance on the cloned card until a balance exists (someone legitimately purchased the cloned card off display). They (the fraudulent customer) can then use the card immediately after a balance exists. Retail group return fraud ● "return fraud," a crime where people exchange stolen goods for cash, use counterfeit receipts or bring back items that have already been worn or used. ● the return of clothing and other items purchased for special occasions, even has its own name: "wardrobing." ● The men would return the expensive evening gowns after wearing the items. Authorities say unknowingly, Nordstrom employees helped them steal more than $150,000 from Hamilton County, Ohio, businesses money authorities say was used to support their lifestyles and trips to transvestite balls around the country. ● "What aided them the most is that Nordstrom had this friendly return policy. If the customer asks for cash, Nordstrom gave them cash," Cutcher said. Best practices for crisis management Top level executive buy ins ● it is essential no power struggles develop internally over who will be steering the ship. ● no questions as to whom will be calling the shots across the company. Crisis management belongs in the business sector ● fit well under security, compliance or risk management. Even loss prevention. And they should no doubt have their own reporting line straight to the top Departmental roles and checklists ● assisted each organizational department to detail a quick snapshot of what their role would be should a crisis occur as well as a checklist to run through in the heat of the moment ● Keep the role overview brief. But develop working documents such as a critical functions task list, internal notification flow chart, and scenario timeline for accomplishing tasks. plan during “blue skies” not “dark clouds” Leverage public sector resources ● ,the private sector can help inform government planning and decision making by sharing pertinent information when crises occur. ● develop key contacts with local officials. Business disaster vs crisis ● A disaster is an event that results in great damage, difficulty, or death. A crisis is a situation that has reached an extremely difficult or dangerous point. ● but failure to handle a disaster properly can lead to a crisis. Disaster Planning ● in a disaster, you probably will be on your own for awhile. The widespread nature of a disaster means public services like fire fighters, police, and medical assistance will not be able to reach everyone right away. So keep in mind these four key facts in your disaster planning: 1) disasters will occur, 2) you have to have a plan before the disaster hits, 3) react with urgency, but don't panic and 4) ride it out. Crisis management ● No company ever expects to have to deal with a PR crisis, but most eventually do. It is critical that the company be prepared ahead of time if it is to survive. ● The goal of developing your plan is to get your people thinking and talking about what might happen and how that can be effectively managed. The goal of the plan itself is to ensure your people have the tools to get the crisis under control as quickly as possible to minimize the damage.
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