CPI Asset Protection & Loss Prevention 2

Question 1

What is 'sweethearting' in retail loss prevention?

Accepted Answer

Employees giving unauthorized discounts or free merchandise to friends or family

Answer

Sweethearting occurs when employees fail to scan items, apply unauthorized discounts, or give away free merchandise to friends, family, or acquaintances at the register.

Question 2

A loss prevention professional discovers a significant discrepancy between perpetual inventory records and a physical count. The FIRST step should be to:

Accepted Answer

Investigate all possible causes including receiving errors, administrative mistakes, and theft

Answer

Inventory discrepancies can have multiple causes including receiving errors, administrative mistakes, damage, and theft; a systematic investigation of all possibilities should precede any accusations or legal action.

Question 3

Which of the following best describes organized retail crime (ORC)?

Accepted Answer

Coordinated criminal groups that steal merchandise in large quantities to resell for profit

Answer

ORC involves professional criminal networks that systematically steal large quantities of merchandise to fence to other retailers or sell online, costing the industry billions of dollars annually.

Question 4

What is the purpose of 'target hardening' as an asset protection strategy?

Accepted Answer

Making specific assets more difficult to steal by increasing the effort or risk required

Answer

Target hardening involves making assets more difficult to steal through physical security measures, access controls, and other deterrents that increase the effort, time, or risk required for a potential thief.

Question 5

Which metric is most commonly used to measure the overall effectiveness of a retail loss prevention program?

Accepted Answer

Shrink rate expressed as a percentage of total sales

Answer

Shrink rate, expressed as a percentage of total sales, is the primary KPI for loss prevention programs because it directly measures total inventory loss relative to business volume.

(CPI) Certified Professional Inspector Practice Test

(CPI) Certified Professional Inspector Practice Test

CPI Asset Protection & Loss Prevention 2