LPC Prep Questions - Course 2
Questions and Answers
As a Regional Operations Manager that has been charged with helping to open a new
market, you are asked to provide statistical characteristics pertaining to the
demographics of the new market. What is the primary reason why this information is
considered valuable to the company?
• It is used to identify the primary customer base - who they are, where they live, and
how likely they are to purchase the products that the company is selling.
• Demographics will help us quickly identify customers that are most likely to steal from
the organization.
• Identifying the race, culture, and religion of the customer base will be used to
determine the costs necessary to protect our stores, customers, and resources.
• The social profile of the market area is a driving factor in determining the potential
need for a dedicated security force. - answer It is used to identify the primary
customer base - who they are, where they live, and how likely they are to purchase the
products that the company is selling.
When looking to implement a loss prevention strategy for a department store chain in
the northeast, a new Director is committed to building an effective loss prevention
program that will serve the overall best interests of the company. In general terms, what
advice would you offer as a primary objective? The program should be:
• Focused on strong investigative initiatives that maintain control and drive
apprehension results
• Implemented under guidelines that are primarily influenced by industry associations
and vendor partnerships
• Founded on the core concepts of the organization, maintaining a strategy that
emulates the focal approach of the company's business plan.
• Attentive to controlling theft at all costs and keeping our stores and our business
focused on loss prevention at all times - answer Founded on the core concepts of
the organization, maintaining a strategy that emulates the focal approach of the
company's business plan.
A successful loss prevention program requires effective communication between the
stores and the loss prevention department. This requires strong leadership that:
• Shares perspective and understanding; and the value of good listening skills
• Sends a specific message and expects the program to be followed
• Insists that every store must always be in compliance with company policy
• Keeps employees informed of all ongoing company investigations - answer Shares
perspective and understanding; and the value of good listening skills
,As a new Director of Loss Prevention, one of your first priorities in the field is to develop
an effective loss prevention training program within your department. From a global
perspective, when developing the loss prevention training programs, where should you
concentrate your efforts first?
• Where we feel that we can make the greatest gains and have the greatest impact on
the business
• Where we can most effectively impact shoplifting, Organized Retail Crime and external
theft
• Where we can most effectively impact collusion, employee theft and related losses
• Where we can impact paperwork errors, receiving issues and other employee
mistakes - answer Where we feel that we can make the greatest gains and have the
greatest impact on the business
As a new Director of Loss Prevention for an established retailer, a new leader decides
to take a closer look at the sales performance of the stores in each market as a loss
prevention strategy is established for the organization. Why would reviewing the sales
performance be important in the development of the LP program?
• Because sales performance ultimately impacts every area of the business, and shrink
is typically viewed as a percent to sales
• Because sales performance will show us whether the stores are only focused on sales
and whether they are willing to consider shrink performance.
• Because sales performance will ultimately indicate whether we have sufficient
resources to implement a shrink program.
• Sales performance ultimately has very little impact in the development of the LP
program and should not be considered when establishing the program. - answer
Because sales performance ultimately impacts every area of the business, and shrink is
typically viewed as a percent to sales
As a new Director of Loss Prevention for an established retailer, a new leader decides
to take a closer look at the previous program and performance before making any
significant changes to her new program strategy. Is this the right decision? Why or why
not?
• This is the right decision because by pointing out past failures to the team we are able
to better emphasize how our new strategy is the better approach.
• This is the right decision because historical perspective gives us a better feel for what
has worked and how we can improve, giving us something to build on.
• This is not the right decision because this is a new program and what happened in the
past is irrelevant, and dwelling on past performance is unproductive.
• This is not the right decision because starting with a clean slate sends a strong
message that change was needed and new leadership is on board. - answer This is
the right decision because historical perspective gives us a better feel for what has
worked and how we can improve, giving us something to build on.
, Once the objectives have been established and the details of our new loss prevention
program have been put in place, what is a primary driver that will determine the extent
to which these new company initiatives will impact shrink?
• How much money is invested in the LP program
• The attitude and approach of the LP team
• The size and diversity of the LP team
• The investigative capabilities the LP team - answer The attitude and approach of
the LP team
As a new Director of Loss Prevention, you have determined that an important aspect in
the development of the loss prevention department is putting together an effective Loss
Prevention Awareness Program. Ultimately, the goal of this type of program would be:
• Providing a means for employees to learn and understand the different ways that
employees will steal from the company
• Providing a means for employees to learn and understand the different ways that
customers will steal from the company
• Providing a means for employees to learn and understand that stopping theft is just as
important as making sales
• Providing employees with a shift in insight and understanding of LP as well as
modifying behavior - answer Providing employees with a shift in insight and
understanding of LP as well as modifying behavior
When developing key metrics that help us to measure the effectiveness of the loss
prevention programs, our primary indicators should be SMART, which represents:
• Shoplifting, Management, Associates, Retail Trends
• Specific, Measurable, Actionable, Relevant, Timely
• Sufficient, Meaningful, Articulate, Respectful, Talented
• Safe, Manageable, Amiable, Researched, Trained - answer Specific, Measurable,
Actionable, Relevant, Timely
A new Director of Loss Prevention has moved from a Department Store setting and into
a Specialty store setting. In his new leadership position, his first thoughts are to bring
with him the same strategies, approach, structure, policies, and other primary functions
to his new company. Would this provide an effective means of establishing the new
program?
• This would likely provide an effective approach since it has been a successful means
of building a program for him in the past.
• This would likely provide an effective approach because loss prevention strategies are
the same regardless of the type of retailer.
• It would be unlikely that this would be an effective approach without considering the
values, structure, beliefs and key strategies that guide his new company.
