How To Safeguard Company Assets

Posted by financer | July 19, 2010 .

Generally, there are companies who suffer asset loss, experienced “unaccountable” losses like shortages in merchandise or inventory loss. It is also a fact that, not all companies are certain if their employees are honest, honorable and moral.

The following can help management to cope sensibly and realistically with deceptive problems of employee’s dishonesty and outside intruders as well. These are control measures geared towards avoiding temptation to minimize asset loss.

Honesty is the best policy. Management must demonstrate clear concern for integrity, loss prevention and aggressive investigation to make it virtually impossible for employees’ dishonesty to flourish.
Be tough with erring employees. The management must take a tough approach or attitude with regards to integrity that clearly indicates that dishonesty, even in its mildest form, will not be tolerated, that investigation will be done aggressively and erring employee will be definitely punished.
Confront the unpleasant realities in business. Dishonesty makes no distinction nor differentiates the levels of employees who are likely to be dishonest. The best way to prevent employees to steal from the company is to conduct a regular and unannounced audit.
Safeguard the place of business. An environment that makes it difficult to be dishonest because of effective loss prevention control like setting up a CCTV (close circuit television). This will instill the fear that apprehension will result to punishment.

Effective loss prevention is a corporate responsibility or function. It is as important and essential as in effective production, marketing or financial management in small business or corporate establishments.