Loss prevention is a practice used by most retail businesses that focuses on putting measures in place to prevent the loss of inventory or money. This can be achieved through policy, procedure or business practices.
Loss prevention is designed to prevent the loss of inventory or money before it actually occurs, making it a proactive rather than reactive strategy. Some examples of effective loss prevention measures include hiring security guards, installing security cameras and increasing visibility in certain areas of the store. Many companies establish entire loss prevention departments to work solely on reducing or preventing loss, theft and damage of inventory and cash.