A key component to loss prevention is assessing the potential threats to the successful achievement of the goal.
Policies, procedures, administration, operations, training, awareness campaigns, financial management, contracting, resource allocation, and dealing with problems like security degradation are all included in this vast sector.
In the example above, the application of risk reduction might result in the business keeping only enough cash on hand for one day's operation.
The two primary methods of accomplishing risk transfer is to insure the assets or raise prices to cover the loss in the event of a criminal act.
Generally speaking, when the first three steps have been properly applied, the cost of transferring risks is much lower.