Associate Level Material
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 | Take no further action due to insurance policy and building up to code | Threat #2 | Stricter on hiring procurers with back ground check. Checking belongings in bags before personnel leave store | Threat #3 | No further action. Company budgets losses in yearly budgets | Threat #4 | Updated alarms and security cameras to help with the act of break in’s and vandalism. | Threat #5 | No further actions taken corporate sees no need to take any more precautions due to mild risk |

Part II: Follow-up questions

1. Do you agree with the company’s responses to these threats? Why or why not?
Some of the changes they were taking will help but yet I believe in the others that there were no further actions taken they could of looked further into the issues at hand. Looking at the booming being a low risk and not worrying about it they should have thought of drills so the employee’s new what to do in any situation

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:making sure equipment is up to date and tested the city that the store is located should have violations for those who do not have working equipment along with knowing the drills of how and what to do when a fire is in place and which exit should be used from which area of the store. Along with assigning individual to take a head count * Threat #2: back round checks is a good start they could also monitor those new employees for a probation period but yet theft from employees comes all the time even from those with a clean record. * Threat #3: having a retail theft guide along with placing fines on those individual getting caught could help eliminate theft in the store along with the fines helping pay those who have not gotten caught. This is less money they the company would have to worry about having to place in the budget and can be used in other ways. this also can help to lower the left in the store. * Threat #4: on sight security scares those away that think of burglarizing places along with vandalizing. Weather inside officers or outside driving around the facility. Those knowing the area is being watch will less likely try anything with the fear of being caught. Also waiting video on a daily basis by the management this also helps with threat 2 of employee theft. * Threat #5: keeping those informed and educating those employees on thing to do in a booming can help to keep employees and customers safe. This can includes emergency evacuation along with guides to help those hurt from the boom. Just like the fire this should be practiced to keep those up to date with the problems that can happen