May 27, 2016
Stop wasting time auditing errors ‒ focus on fraud
Loss prevention pros know that they have to protect their companies against two kinds of loss – outright theft (internal and external) and operational loss (errors by employees). The 2015 U.S. Retail Fraud Survey reported that employee theft and cash theft were cited by respondents as the top two sources of store loss, with administrative and bookkeeping errors following closely behind.
Which type is your loss prevention team focused on? In our store observations, we’ve found that, during store audits, too often loss prevention becomes focused on tracking down the cause of administrative errors by store employees, taking time away from identifying, tracking and resolving actual fraud as quickly as possible.
Nobody’s perfect, of course, so some errors at stores are inevitable. But currency management errors can be minimized, in turn reducing both the actual losses and the time your loss prevention team has to spend researching them.
Errors can be reduced by:
- Establishing clear, enforceable corporate policies around currency management.
- Ensuring your workforce is properly trained in following those policies.
- Creating straightforward procedures without room for interpretation.
- Implementing easy-to-use tools to manage the reconciliation process across the organization, maintaining consistency at every location.
With errors reduced, your loss prevention team can focus on identifying fraudulent activity and putting a stop to it. Audits are, of course, an important tool in this process. Our new Audit Checklist offers some key points all audits should include. Check it out and see if there’s anything you might be missing.