Controls and process management

This will just be a quick post to discuss what I mean when I talk about controls - as they pertain to process management.

Security in the retail sector historically counted on catching the shoplifter; however this is not the most effective means for controlling losses. Another example is having someone that counts the offering plate collections arrested after they embezzle some cash. It's just not effective and it means that you have lost it - and you probably won't get it back. So what is more effective?

Take the shoplifting example. In our instance our thief takes several items into the fitting room where they conceal some within their personal bags. Maybe the loss prevention team is allowed to make fitting room stops, or maybe not. Either way the crime must be committed first. How many will be able to do this without attracting enough surveillance to be stopped (legally)? Far too few compared with the thieves successes. Now how about a fitting room attendant? When the thief enters the fitting room area the attendant counts the garments and provides the thief with a numbered placard that corresponds to the number of garments. When they come out the process is reversed... Voila' magic does not happen in the fitting room and nothing disappears - this time. It's not a foolproof system but it's good enough for this example. If even half the thieves are stopped in this manner it is still more effective that trying catch them after they conceal something.

Back to the offering plate... We have a long-term member of the congregation counting the money and one day someone realizes that all of it didn't make it into the church's accounts. It's a crime, yes, but now an investigation must take place - which costs money - and even if they admit to the theft the cash is probably gone - POOF - into thin air. Now what if we were to have two persons count the money together? Maybe then they could keep each other honest. What you say? They'll just steal some other way! Maybe so, but we can always add controls so that thefts become more visible more rapidly. This is much more cost effective in the long run.

So that is what is meant by controls. Procedures and devices put in place to enforce policies. Our policy says all the funds must make it into the organizational account, so we make it difficult to do otherwise.