| Losses to the company can result from | | | | roadmap. You must develop ways to evaluate |
| fluctuations in the stock market, economic | | | | losses, predict them and avoid them. |
| downturn, employee crime, and natural disasters. | | | | 4. Collaborate with other Businesses |
| It is better to be safe than sorry, as many small | | | | In order to prevent losses, you should consider |
| businesses have found out too late. The first step | | | | collaborating with other similar small businesses. |
| to loss prevention is identifying areas of potential | | | | You can work with other businesses on issues like |
| loss. | | | | audit practices, loss evaluation and using statistical |
| Loss prevention includes risk management, | | | | ways of tracking trends. You could also |
| protecting the interests of the shareholders, and | | | | collaborate on human resources, operations, risk |
| protecting the interests of the organization. It | | | | management, and other related issues. |
| ensures uninterrupted business productivity and | | | | 5. Focus on Key Areas |
| the helps the business grow. | | | | Loss prevention should not be a diffuse program |
| Apart from strengthening the risk management | | | | that covers everything imaginable. Instead, you |
| strategies of the management, you also need to | | | | should focus on what can cause the most loss to |
| look into the employee risk management | | | | your small business. In most businesses, losses |
| strategies. Many losses to the company maybe | | | | are caused more by employee claims than by |
| caused because of high insurance premiums on | | | | natural disasters. The key is to prioritize and then |
| insuring the employees. | | | | allocate more resources to areas that are more |
| Cutting Down on Losses | | | | problematic. |
| Here are some steps you can take to cut down | | | | Consider Alternatives |
| on your losses | | | | In case the essential services and supplies are |
| 1. Effective Management | | | | disrupted, whom can you approach for help? |
| The management at all levels needs to | | | | Keep alternatives ready, whether for electric |
| understand the company's goal of loss prevention, | | | | supply, essential raw materials, distribution, |
| and undertake the same goals. | | | | transportation, or promotion. |
| 2. Employee Participation | | | | By considering all potential risk factors, you can |
| No loss-prevention program can be effective, | | | | prevent losses to your small business. Thinking |
| without the participation of employees. The | | | | creatively helps, since it gives you new ways to |
| employees need to be trained in loss prevention | | | | tackle old problems of losses. |
| methods. You could enroll them in loss prevention | | | | Additional Help |
| training classes so they know what to do before, | | | | If you are not sure how to tackle the problem of |
| during, and after a situation that can cause loss. | | | | losses on your own, you can approach a small |
| 3. Develop a Program | | | | business consultant for help. |
| The loss prevention program should have a clear | | | | |