Retail Executive

NOV/DEC 2017

Retail Executive is the trusted advisor to top retail executives from the industry’s most profitable retailers. We help retail executives succeed in their job role and grow their business via exclusive, actionable, peer-driven content.

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But it does represent the very beginnings of two groups merging, with security assessing and integrat- ing coming closer to IT security teams and totally elim- inating silos throughout the enterprise. It requires the executive, acting as an umbrella, so to speak, to integrate risk postures across the entire enter- prise and build collaborative relationships well beyond traditional lines, placing the executive at the center of all risks and allowing the enterprise to benefit from its developed and intuitive subject matter expertise. RETAILERS RILA — Beyond Shrinkage, Introducing Total Retail Loss Meanwhile, last year the U.S. retail industry saw the in- troduction of the Retail Industry Leaders Association's (RILA) Asset Protection Leaders Council-commissioned study Beyond Shrinkage: Introducing Total Retail Loss. Carried out by Professor Adrian Beck from the Universi- ty of Leicester in the U.K., this study set out to provide the retail industry with a better understanding of what con- stitutes retail loss, moving beyond the traditional confines of shrinkage to develop the much broader concept of total retail loss. Representing the first academic step in expanding loss prevention's vision and impact beyond the traditional store-driven shrinkage measurements, Beck offered a clear definition of total retail loss as "events and outcomes that negatively impact retail profitability and make no pos- itive, identifiable, and intrinsic contribution to generating income." By formally incorporating e-commerce for the first time, this definition covers the entire retail business. Providing a macro overview of all forms of loss allows current and future loss prevention executives the ability to maximize their impact and "reimagine their role with- in the business, providing them with an opportunity to remain a relevant, agile, and highly-valued function in a rapidly changing retail landscape." CYBERCRIME'S INTERCONNECTEDNESS Cybersecurity responsibilities will inevitably grow as more and more businesses shift online and the inter- connectedness of organized retail crime and cybercrime become more apparent. A large number of e-commerce fraud teams already report into loss prevention. It won't be a big leap when scan-and-go, Amazon Go, BOPIS, and online returns begin to drive more crime at store level than the LP analytics team can handle. The LP executives and IT security executives will be working side by side literally 24/7. I may be wrong, but in years to come, retail won't need two groups, as normal shoplifting is processed and pro- grammed out, and cashiers won't exist. What's left? R HOW INDUSTRY & RETAILERS ARE REDEFINING THEMSELVES INDUSTRY ASIS — New Strategic Plan to Guide Direction of the Society This past year the American Society for Industrial Se- curity (ASIS), the largest security association in the world, recognized that this is a transformational time for not just society, but for the profession as well. "The blurring of operational and cybersecurity, the need for a business-first mentality, and challenges from Big Data to Internet of Things security to ISIS and rogue nation states remain unabated." To meet those challenges and opportunities, ASIS is infusing enterprise security risk management in all of its products and services and in its new strategic plan. ASIS members are seeing the cybercrime impact on their businesses and functions and are recogniz- ing the evolutionary mandate to expand and rede- fine their strategic plan for the industry as a whole worldwide to that of enterprise security risk man- agement (ESRM), which is a risk-management pro- cess used to manage security risks regardless of re- porting lines or organizational structures and vastly broadens the scope of risk assessment responsibili- ties for the security executive. "Convergence relates to the degree of integration with- in organizational structures that combines physical security and information security teams. This could in- clude the integration of processes, procedures, or tools for the purpose of aligning security responsibilities." ESRM does not define an organizational structure. ESRM uses risk-management principles to manage se- curity-related risks across an enterprise. Similar to LP's frustrations, many IT security executives question reporting to the CIO and feel relegated to second or third fiddle due to the massive technology demands put on today's CIOs. RETAILEXECUTIVE.COM NOVEMBER/DECEMBER 2017 37

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