What Are The 5 Points Of Loss Prevention?

Loss prevention is a vital part of business operations, particularly in the retail sector. It puts the spotlight on minimising issues like theft, fraud and other forms of financial loss. The five key points of loss prevention usually include:

1. Training staff and improving awareness. 

It’s vital to educate your employees on loss prevention strategies and the importance of being as vigilant as possible. You need to train staff on how to recognise suspicious behaviour and respond in the appropriate manner. After all, preventing loss starts with reducing the risk of human error. 


Whether you work in retail or the industrial sector, it’s vital to cultivate a culture of honesty and integrity. Although problems like shoplifting are prevalent in retail, there’s also the issue of thefts from within a business. 

2. Physical security measures.

In order to reduce the risk of a loss of assets, it’s vital to implement physical security systems. These can include CCTV surveillance cameras, alarm systems, and anti-theft devices.

You might also want to use physical deterrents like security tags on merchandise and locks on display cases. It’s also vital to ensure proper lighting in and around the premises to deter potential thieves.

3. Inventory management

It’s important to conduct regular inventory checks and audits to track stock levels accurately.

New World Norm can help you implement a robust inventory management system to monitor product movement and detect discrepancies.

We can also help you make the most of technology such as RFID (Radio-Frequency Identification) for real-time tracking of inventory.

4. Policies and Procedures:

Our risk assessment experts can help you develop and enforce clear policies regarding theft, fraud, and general loss prevention practices.

We also help to establish procedures for handling cash, refunds, and returns to minimise opportunities for theft. Furthemore, New World Norm helps to implement strict access controls to limit unauthorised access to sensitive areas and information.

5. Customer Interaction and Store Layout:

It’s crucial to design store layouts that enhance visibility and reduce blind spots where theft can occur.

It’s best to position high-value items in areas with high visibility and close to employee stations.

You should also train employees to engage with customers actively, as attentive customer service can deter potential thieves.

By focusing on these five areas, businesses can create a comprehensive loss prevention strategy that helps safeguard assets and reduce financial losses.

A leading security risk assessment company based in the UK, New World Norm works with businesses all over the world. 


We deliver modern risk management solutions that enhance organisations’ confidence in achieving their strategic objectives through expert, independent insights into key operational risks.  Loss prevention is just one of the areas we can assist with. 

Loss prevention is crucial for businesses for several key reasons, including for financial protection. Theft, fraud, and other forms of loss can significantly impact your company’s bottom line. By preventing these losses, you can protect their revenue and profit margins.

Losses can also disrupt your operations, leading to delays and downtime. Effective loss prevention ensures smoother operations and reduces the need for costly disruptions and investigations.

Loss prevention helps maintain accurate inventory levels. This is essential for effective supply chain management. This accuracy helps in meeting customer demand without overstocking or understocking products.

Consistent stock levels and the ability to provide products as promised build customer trust and satisfaction. Losses that result in stock shortages can damage your company’s reputation and lead to disgruntled customers.

It’s also vital for employee morale and safety. 

A strong loss prevention program can create a safer work environment by deterring theft and reducing the risk of workplace violence. It also promotes a culture of honesty and integrity among employees.

Then there’s the legal side of matters. Many industries have regulations that require companies to maintain certain security standards. Effective loss prevention ensures compliance with these regulations, avoiding legal penalties and fines.

Loss prevention helps you stay ahead of the competition. 

Companies that effectively manage and prevent losses can reinvest the saved resources into other areas of the business, such as innovation, customer service, or marketing, giving them a competitive edge.

It’s a key part of risk management and should be part of your strategy. 

 Loss prevention is a key component of a broader risk management strategy. By identifying and mitigating potential risks, businesses can protect themselves from unforeseen events that could otherwise cause significant harm.

New World Norm can ensure that it’s part of our overall approach, with our services including 

  • People risk management
  • Asset protection
  • Preventing workplace violence
  • Operational risk management 

Overall, loss prevention is a proactive measure that safeguards your company’s assets, reputation, and long-term viability. Over time, it contributes towards your business’s overall success and sustainability.

If you need first-class security risk management, find out more about New World Norm. Or don’t hesitate to contact our friendly team for more information.

Do you need to

✅ Safeguard your Team?
✅ Be ready for Business Disasters?
✅ Improve your Supply Chain?
✅ Improve Inventory Management?
✅ Evaluate your business Risks?
✅ Educate your teams on Risk Management?
Contact us today so that we can work with you to create effective solutions that deliver results.
Celebrating 30 years in Loss Prevention