Small and medium-sized companies, such as event organisers, consulting firms, law firms, restaurants, child care centres, cafes and supply stores, etc., frequently do not spend enough time and money in avoidance of accidents and corporate security preparation. As a consequence, these businesses are often left vulnerable to threats impacting continuity of operation. For more details click Toronto loss prevention.
To order to ensure that business operations are guarded against fraud, shielded from vulnerability and that employees/business operations to general are not exposed to undue risk during day-to-day activities, business managers need to implement a clear loss management strategy.
The four primary sources of risk to be considered by a loss management program are:
- Elements of an actual crime
Either business owners operate in quiet neighbourhoods, from leased units in industrial buildings or even in a corner of a busy shopping center, many have the mistaken perception that their companies are “too small” to become a target for fraud or sabotage. This results in operators taking unnecessarily risky chances without even knowing it in day-to-day business activities and often paying a heavy price for this complacency. The elements of external crime include stealing, robbery, acts of vandalism and anarchy.
- Elements of an internal crime
Statistics have shown that workers in some sectors currently maintain up to 80 per cent of the losses from theft. Improper processes with insufficient internal checks and balances, combined with excessively trusting and approving staff, can lead to systematic exploitation of blind spots in the business operations of a organization. This is especially the case if the distribution and supervision of research is not handled properly.
- Negligence & Ignorance
A safety supervisor can choose to follow safety protocols when conducting high-pressure testing in a manufacturing yard resulting in technician deaths should the equipment fail unexpectedly. An inexperienced clerk in a freight forwarding company can process paperwork for exporting managed cargo, thus directly infringing export control regimes endorsed by the country in which he/she works. Business owners themselves can also be lax in ensuring adequate measures are in place to cope with any potential natural disasters or failing to develop the requisite safety protocols in their businesses. Cost savings by employing inexperienced workers who demand low wages but do not have the required skills or expertise to properly execute a job role, may easily expose the business to the risk of incompetence and ignorance.
- Poorly Built Processes
Procedures within business operations are not always well handled and this can have a serious effect on business operations, such as when proper procedures are not set up for the post-resignation assignment and assumption of duties. This can lead to a complete loss of intrinsic and vital technological information.