Protecting your organization from internal and external theft is an important risk management tactic to reduce loss and claims.
Theft may rise as inflation and prices rise, and fraternal organizations become a target for thieves hoping to grab cash, food, alcohol and other valuables.
Even in times of economic stability, theft remains a significant risk for fraternal organizations. Follow these tips for protecting your organization from internal and external theft.
Protecting Your Organization from Internal Theft
While you hope the most upstanding citizens are part of your organization, it is always best to err on the side of caution by reducing temptation and implementing policies and procedures.
- Select the right employees and volunteers. Conduct reference and background checks on applicants before hiring. Be consistent and make sure that if you screen one candidate you screen all candidates.
- Require volunteer training and signed waivers. Have your volunteers complete any necessary training and require all volunteers to sign this waiver before they begin work. An updated waiver should be completed annually.
- Treat and pay employees fairly. When employees feel cheated or devalued, they are more likely to justify theft.
- Have an open-door policy. Employees, members and volunteers are most aware of areas vulnerable to fraud. Talk to them and ask for their help in reporting possible areas of concern.
- Create a culture of accountability. Conduct regular, unannounced third-party audits and have policies in place for the handling of cash, donations, check writing and expense payouts.
Protecting Your Organization from External Theft
Protecting your organization from external theft is crucial too.
- Limit cash. Keep cash on premises to a minimum by making frequent bank deposits at varied times.
- Take safety measures with the cash box. Start events with just enough cash to make change and run the till and ensure someone always attends to the cash box during the event. Consider adding an under-the-counter drop box or smart safe bill accepter.
- Protect food and beverage supplies. Store food and alcohol supplies in locked cabinets or lockable storage rooms. Supervise and spot-check to ensure procedures are being followed. Verify inventory at least monthly, being on the lookout for any anomalies.
- Invest in security cameras and alarms. Place security cameras inside and out to reduce the potential for theft and fraud. Inspect and maintain security alarms regularly to ensure they are in proper operating condition.
Protect Your Organization with Insurance from Lockton Affinity
Organizations that take theft seriously often see a reduction in losses and higher employee, member and volunteer satisfaction. However, theft can remain a challenge for even the most careful organizations.
Protect your organization from loss with Property insurance from Lockton Affinity. Our dedicated insurance representatives have been trained to understand the risks Posts face, so a quick call will help ensure your property is properly insured.