Risk assessment and Loss Prevention Boards of Directors, shareholders, stakeholders, and the public all expect organisations to anticipate and manage risk, as well as setting in place a comprehensive and cohesive security
What to expect when you outsource the Risk assessment and Loss prevention task?
strategy across all functional lines. Luppo has gathered input from private sector leaders to understand how they deal with Risk assessment and Loss
1. Mission
prevention. What we discovered is that very few organisations have figured it out; there is gap regarding both strategy as well as possible implementation. The remainder of this article will provide a look and feel on how to manage Risk assessment and Loss Prevention. A successful model for organisations is to have a designated single point of accountability at the senior governance level with responsibility for crafting, influencing, and directing an organisation-wide
security/risk
strategy.
The
ability
to
influence strategy and address matters of internal and external
Priorities
risk exposures requires such a leadership role. This alignment
The first task is to develop an understanding of the organisation.
within the organisational hierarchy has the merit to reflect the
This does not mean that the practitioner must become an expert
organisations values into the plan and to signal executive
in the operation of the organisation, but the goal is to acquire
commitment and support to the project.
enough of an understanding of the organisation to appreciate its complexity and nuances. This is done through various
Sponsorship positioned at managing board level
interviews with key people in charge of policy, administration, day-to-day operations, and facilities management. The following factors are been taken into consideration: nature
The Risk assessment and Loss prevention sponsor can be with
of the business activity, types of products, the competitive
any C-suite Officer, but our experience shows that it would be
nature of the industry, the sensitivity of information, the
preferably Legal or if legal is not represented in the board, the
corporate culture, the perception of risk tolerance, and so on.
President of the board.
2. Risk assessment The are 2 options, place it within your organisation or outside (outsourcing). Today, many businesses find it is easier to outsource rather than incurring the cost of hiring a full-time employee. Luppo’s research shows that the top reasons why companies outsource the Risk and Loss expert function are: -
Reduce costs : no need to provide employee benefits. In
Risk assessment provides the cornerstone for informed decision-making about how to address the Loss prevention organisation. The following drawing decomposes the different loss elements for each security incident:
many cases a dedicated Security employee is cost prohibitive. -
Quality : contribute expertise that may not be readily available in the organisation o
have a higher level of expertise and broader risk management
skills,
provide
objective
risk
management and loss prevention expertise with no conflict of interest. Š by Julie M.T. BOOST MSc CPP CFM
An organisation can plug the loss-bleeding by taking on board Risk assessment and Loss prevention. This entails funnelling energy and resources to security instead of undergoing the bleeding of losses.
© by Julie M.T. BOOST MSc CPP CFM
3. Action plan
4. Organisation Security incidents happen because the lack of a skilled guardian. The motivated offender uses a cost-benefit analysis before he moves into action. Due to the fact that there is no ‘guardian’, the chance that the offender will succeed in his gaol is significant. Many organisations say : “we did not see this coming”. Well, this is correct, they don’t have a Loss Prevention expert on board. To optimise Loss prevention, there is the acute need of a Risk assessment and Loss prevention expert on board. LUPPO works hands-on. Each project will be developed 'tailor made' based on the specific Risk Management and Loss prevention needs of the customer. We fix what keeps you awake at night!
Julie M.T. BOOST MSc - CPP - CFM www.luppo.be