Appendix_C

Associate Level Material Fonda Charles 10/3/2013 Appendix C Risk Management Options Part I: Scenario and Identification A retail chain has asked an outside security consulting team to perform a threat and risk assessment for one of its branches. The consulting team has identified the following threats and accompanying risk levels for this particular store: 1. Fire (medium) 2. Internal theft (high) 3. Shoplifting (medium) 4. Burglary (high) 5. Bomb (low) The retail chain has decided to respond to these threats in the following manner: For threat #1, management has decided to take no further precautions because the store is currently up to code and the insurance policy the company carries fully covers it in the event of fire. For threat #2, management has decided to implement background checks for all new applicants and all employees must now have their bags and backpacks checked by security before exiting the store. For threat #3, management has decided to add no additional security measures. Losses due to shoplifting are expected and have been included in the store’s budget. For threat #4, management has installed a comprehensive alarm and surveillance system in all stores, with around-the-clock security monitoring. Now, break-ins at this store cannot occur without detection. For threat #5, management intends to institute no countermeasures. With several other branches throughout the region, the company overall would suffer only minimal losses even if this threat were to materialize. In the following table, identify the type of risk management option the company has employed for each threat: |Threat |Risk Management Option | |Threat #1 |No further action taken, insurance policy fully covers in the event of fire. The store is up to code. | |Threat #2 |Background checks implement for all new applicants. All bags and backpacks checks before exiting the | | |store by security. | |Threat #3 |No extra precaution taken on shoplifting. | |Threat #4 |Installed comprehensive alarm and surveillance systems in all the stores with 24 hour security | | |monitoring. | |Threat #5 |No countermeasures taken on bomb threats. | Part II: Follow-up questions 1. Do you agree with the company’s responses to these threats' Why or why not' Threat #1: I do not agree with management because if the fire threat is medium the management needs to find out what can cause the fire and use extra precaution to prevent the fire to lower the risk. Threat #2: I agree with all applicants having a background check this will inform the employer of any red flags before hiring. I also agree with employees being checked by security because this will lessen the risk of theft by the employee being embarrassed. Threat #3: I do not agree just because the store is cover because shoplifting is expected precaution should be taken to prevent shoplifting from occurring and will save the store money. Threat #4: I do agree with the alarm systems and the 24 hour surveillance because this will prevent burglary and save the store money from losing broken and stolen property. Threat #5: I agree because with the bomb threat low and others store in the area the company is not at risk of a major lost. 2. Considering the risk-level associated with each threat, list an alternate countermeasure or response for each threat and the type of risk management option your proposed countermeasure represents: • Threat #1: Clean the store and be sure all fire hazards are stored properly. Get hazard safety code for the store to ensure the store is covered under hazard materials. This will lessen the chance of a fire in the store. • Threat #2: Install a scanner in the store for the employees for entering and exiting; also install surveillance cameras in the store with security monitoring. This will lessen internal theft from employees. • Threat #3: Extra visual security guards in the store. This will save the store from insurance raise and merchandise lost and continues with coverage on shoplifting from going up. The shoplifter will get caught before leaving the store. • Threat #4: Visual security guards on patrol conducting rounds will discourage a burglar from any attempts to rob the store. Break in may not occur at all. The detection of the robber will have a less chance of getting away. • Threat #5: Will have bomb insurance coverage. To ensure the property at that location is covered in case of a real bomb.