The Concept of Asset Protection and Loss Prevention PDF

Preview

Summary

From research, this paper targeted several important areas about the concept of asset protection and loss prevention...

Description

Introduction From research, this paper targeted several important areas about the concept of asset protection and loss prevention. In light of this, according to Wischnitzer, & Wischnitzer (2006 pp207). They asserted that Asset protection is the concept of strategies for guarding one's wealth. Asset protection is a component of financial planning intended to protect one's assets from creditor claims. Individuals and business entities use asset protection techniques to limit creditors' access to certain valuable assets while operating within the bounds of debtor creditor law. While loss prevention is any actions taken to reduce the amount of theft, breakage, or wastage in a business. As the premier firm involved in retail loss prevention, they aim to equip clients with an effective deterrent to theft and the ability to drive down the cost of crime. However, this paper further explains three retail loss prevention strategies that plug losses, five asset protection strategies safeguarding personal and corporate wealth, why loss prevention and asset protection are important and some possible ways to protect your assets.

1|Page

The Concept of Asset Protection and Loss Prevention However, from the main sense of this appeal work, which drawn an outline on the concept of asset protection and loss prevention. From point of view, asset protection and loss prevention concept basically based on giving actual security and important measures to protect an organization from any big loss and also gives technical advice to in terms of proper security against employees and customers. Furthermore, according to Wischnitzer & Wischnitzer (2006 pp.208-223). the concept of loss; monetary loss, loss of inventory, or loss of reputation, can be broadly examined from two viewpoints at the microeconomic retail level where losses affect the day to day business operations, and at the macroeconomic corporate level where losses jeopardize the company’s survival. Mounting losses seriously impact business operations, the product’s market share, and the public perception of the company’s brand image. Loss prevention collectively describes the strategies reducing or preventing business hazards from spiraling out of control. Asset protection in comparison is the creation of a legal framework to protect the company and the promoter at the corporate level from damaging lawsuits. Both loss prevention programs and asset protection plans safeguard business interests, albeit from different angles, and every business requires a combination of both loss prevention and asset protection plans to safeguard an exponentially growing business empire. Expert loss prevention and asset protection consultants argue that failing to prevent losses and protect assets exposes companies to myriad problems that escalate and strike at the very foundation of business wealth creation and ethical business practices. Three Retail Loss Prevention Strategies That Plug Losses According to Kemp, (2004 pp. 284–288). The 30th Annual Retail Theft Survey conducted by Jack L. Hayes International in 2017 revealed that retail giants recovered $188 million in stolen goods from over 400,000 shoplifters and deceitful employees, pinpointing why loss prevention plans are the need of the hour. Here are the top three loss prevention strategies that help you stem the erosion of your business inventory: Electronic Article Surveillance (EAS) Tagging to Prevent Shoplifting; The EAS tag fixed on high-value items cannot be manually removed by the shopper. The tag receives and transmits

2|Page

signals to an antenna stationed at the firm’s entrance. The tags are designed to beep an alarm the moment an unsold or stolen tagged item crosses the company threshold. Radio Frequency Identification Readers (RFIDs) Tracking the Movement of Retail Goods the RFID is an advanced device that shows you where retail goods are located in a real-time tracking scenario. A truck transporting goods from Boston to New York fitted with an RFID reader and sensors, can tell you whether the goods have arrived intact in New York. If an article is removed in transit, a cautionary message is transmitted to the company’s centralized logistics network. Intelligently Securing and Packaging Cash and High-value Items; At any moment of time, billions worth of cash and commodities with a high degree of sensitivity and value would be traversing the nation. The intelligent technology embeds plastic and aluminum casings with a three-tier security protocol that improves the visibility of the product, enables GPS tracking, and prevents unauthorized access using a lock and key function that can only be operated at the shipping and destination points. Sensors can be embedded in virtually any kind of packing from cash deposit bags, coin bags, and sealed security covers, to tamper-proof cash vault shipping containers. Five Asset Protection Strategies Safeguarding Personal and Corporate Wealth Kemp, (2004). Shielding Your Business with a Legal Umbrella; the sole proprietorship all-in-one business entity exposes both business assets and personal wealth to predatory lawsuits and adverse judgments. Change your business into a Limited Liability Company (LLC) or S Corp that separates business assets and personal properties, safeguards your personal income stream, and bestows tax advantages. Transferring Titles in the Company’s Name; Piercing the corporate veil is a strategy adopted by creditors to make the shareholder responsible for corporate liabilities and obligations. A perverse judgment could see you lose personal assets along with business assets. The ideal solution is to separate your income stream and bank accounts from company accounts and transfer all high-value properties in the company’s name. Fixing Liability by Streamlining Company Protocols and Procedures; Shift from direct rental income to company leased properties. Move the title of high-value properties and industrial (and 3|Page

office) equipment in the company’s name. Regularize hiring of employees only through a designated recruiting infrastructure operated by the company. Hire company professionals to handle contracts and execute service agreements, and do not use personal emails and avoid direct client contacts for business purposes. Professionals hired for specific duties should be licensed, bonded and insured. Insuring Your Business against All Potential Risks and Losses; when the business faces liability suits and damage compensation claims, it should be the insurance company picking up the million-dollar tab, not you. Review all existing insurance policies to ensure you’ve backed up every business risk conceivable. Take insurance cover that is most appropriate to the risk that you intend to cover and don’t fall for the “this policy covers everything” trap. Using “Tenancy by the Entirety” Protection; if your home state provides this protection, all personal assets that you place under the tenancy-by-the-entirety clause can protect you from lawsuits that make you liable for losses when your spouse or partner is sued. It’s just a matter of titling personal properties appropriately. Why is loss prevention and asset protection being important? According to Silander & Janzekovic (2013 pp. 45–74). Loss prevention is important is important because it develop and controls and focus on areas of the business that incur loss (point of sale, inventory control, cash control, safety, shoplifting, employee theft, etc.) will help establish proper policy and procedures to prevent loss. Loss caused by theft, error or margin erosion affects bottom line profitability. From point of view, if Loss prevention takes an action to reduce the amount of theft, breakage, or wastage in a business, therefore, Employee theft is a loss prevention area that generally doesn't receive as much monitoring as customer theft. Asset protection is important because its plan is to prevent or consciously reduce risk by insulating business and personal assets from the claim of creditors.

4|Page

Possible Ways to Protect Assets From my point of view, since the concept of asset protection and loss prevention create a frame work of understanding in eradicating claims of creditors and theft or breakage from any organization, asset protection therefore considered possible ways in the protection of an asset. However, from Silander (2013). In summarizing her point of view to the possible ways to protect asset, Firstly, own insurance; in protecting an asset from any given area like tangible property that worth more expensive or not, owning insurance would possibly close up the gap if one’s asset or property involved in damages, accident and theft. In order words, insurance is basically there to cover, regain or give back what has been missing in a clear legal way. Secondly, use retirement account; using retirement account helps to bridge footage of development in old days or even before late age. This more likely of insurance, but the differences are retirement account pay back whatever that has been deposited which would be use in the in future if one lacks a job or has reached the age of retirement. Lastly, don’t wait to protect yourself; this is another important possible way to protect an asset, many times people believe in self-protection of their own properties and assets the fact that with the protection of governmental or nongovernmental organizations/insurance companies would actually yield more effort in guaranteeing the protection of assets.

5|Page

Conclusion The concept of asset protection and loss prevention have outlined many significant points on how to control organizational values and assets. The important methods have been pointed out in the above discussion or research about asset and loss prevention concepts. It is high time for private organization and governmental organizations to know what it means in having their assets, properties to be insured with safety, by controlling adverse effect of breakage, theft and shoplifting. The concept of asset protection and loss prevention also brings out technological qualities in improving modern security and develop organizations to a better possible way for individuals or customers.

6|Page

Referencing

Kemp, B. (2004). Final Remarks: Protecting Assets. Cambridge Archaeological Journal, 14(2), 284–288. Cambridge University Press. Retrieved on 21st /02/ 2020 http://doi.org/10.1017/S0959774304260164 Silander, D., & Janzekovic, J. (2013). Responsibility: Protection and Prevention. In Responsibility to Protect and Prevent: Principles, Promises and Practicalities. Chicago: chapter, Anthem Press. Wischnitzer, S., & Wischnitzer, E. (2006). Protecting Your Assets. In Wischnitzer's Residency Manual: Selecting, Securing, Surviving, Succeeding. Cambridge: Cambridge University Press. Retrieved on 19th/02/ 2020. from http://doi.org/10.1017/CBO9780511547188.020

7|Page...