MANAGEMENT

Detailed explanation-1: -Loss prevention aims to preserve a business’s profits by reducing losses due to theft, fraud or operational errors. Loss prevention is widely used in the retail sector to address problems such as shoplifting and employee theft, but it’s also applied in other industries that frequently experience theft and fraud.

Detailed explanation-2: -The six principles, as shown in the diagram to the right, include Prevention, Awareness, Compliance, Detection, Investigation and Resolution.

Detailed explanation-3: -Loss prevention aims to reduce preventable losses, those caused by inadvertent or deliberate human actions. For example, a loss prevention business policy would be designed to stop incidents of shoplifting, theft, vandalism, fraud, employee misconduct, waste, and other such incidents.