Use verbal announcements on the loudspeaker and place signage throughout the establishment, at entrances, in restrooms, and in breakrooms to remind employees and customers to maintain distances of 6 feet from others. Fortunately, with a retail risk management strategy in place, you can neutralize many threats before they happen. Workers’ compensation claims make up the bulk of insurance claims for retailers, according to Nadel, so an increase due to the aging workforce is no small concern. In … Credit risk is the possibility of losing a lender takes on due to the possibility of a borrower not paying back a loan. In order to effectively mitigate risk in retail, someone has to be held accountable. Place visual cues such as floor decals, colored tape, or signs to indicate to customers where they should stand during check out. The #1 Killer of Retail Businesses: Being Out of Cash “Profit cures a lot of ills, but cash flow pays the banker’s bills.” Poor cash management is the #1 killer of retail businesses today. Additional workplace-specific times to clean hands include: Before and after work shifts and periodically throughout shift, After touching money or objects that have been handled by customers, such as reusable grocery bags, Before putting on and taking off disposable gloves when performing food prep. This shortage of employees caused many retailers to up their game by offering benefits, like paid time off and 401(k) eligibility, that go beyond the traditional employee discount. This guidance supplements the general interim guidance for workers and employers of workers at increased risk of occupational exposure to SARS-CoV-2. The retail industry is a major employer in the UK employing around 3 million people. Slip and fall lawsuits. The fact that retailers are vulnerable to data breaches shouldn’t come as a surprise to anyone. J.C. Penney has lost $196 million so far this year, causing their stock to trade at about 60 cents a share, according to the Washington Post. Whenever possible, conduct conversations through phone calls. Mounting tensions caused by America’s trade war with China, the looming threat of a no-deal Brexit and a rocky G7 summit are all causing global trade to seem increasingly unstable and retailers are facing a lot of uncertainty when it comes to the supply chain. Afterall, isn’t retail work the dominion of teenagers looking for an after school or summer paycheck? Actively encourage sick employees to stay home. Risk of significant business impact of key systems not being available (websites, core operating systems, e -mail etc. By continuing to use our site without changing your settings, you're agreeing to our cookie policy. They also have to worry about product damage, business interruption and data loss. Use tissues when you cough, sneeze, or touch your face. Place money directly on the counter when providing change back to customers. As more people shop online, e-commerce crimes are on the rise. Having a diverse customer base can help buffer you against economic changes that drastically affect your target customers’ spending. Please note that only those suppliers who are sponsoring the event may attend in person. “It is no secret that social media has had and will continue to have a significant impact in the retail industry, for both the consumer and the retailer. Market risk refers to the risk that an investment may face due to fluctuations in the market. Employers should: Stay informed. Aon compiles a retail industry analytics report annually, collected from proprietary data and client interviews, identifying the top 10 risks. Courtney DuChene is a staff writer at Risk & Insurance. Top Risks from the 2017 BDO Retail RiskFactor Report General Economic Conditions. Throw used tissues in the trash. Joaquin Castro, the brother of Democratic presidential candidate Julian Castro, called on consumers to “reconsider where they spend their money” by boycotting businesses owned by Trump donors, the Texas Monthly reports. Worker risk of occupational exposure to SARS-CoV-2, the virus that causes COVID-19, during an outbreak may depend in part on the industry type and need for contact within 6 feet of people known to have, or suspected of having, COVID-19. Worker risk of occupational exposure to SARS-CoV-2, the virus that causes COVID-19, during an outbreak may depend in part on the industry type and need for contact within 6 feet of people known to have, or suspected of having, COVID-19. Implement a system in which relief workers rotate into the cashier station to allow cashiers to leave the station to wash their hands regularly. OSHA has divided job tasks into four risk exposure levels, as shown below. No matter where on the globe you choose to operate, Kroll has deep experience in retail risk management mapping competitive landscapes, identifying and reviewing potential partners, and assessing various operational, regulatory, political and societal risks. Uncertainty surrounding the effects of COVID-19 is plaguing every industry, but possibly none quite like the public sector. National Comp 2020 is coming to a living room near you on. “Retailers also need to manage the risk associated with social media that can have a reputational impact, whether that is a dissatisfied customer, a product issue, or their consumer base reacting negatively to a new product line, changes within the company or concerns with what the company does or doesn’t stand for.”. This website provides information and guidance on key risks within the retail … Conduct frequent cleaning of employee break rooms, rest areas, and other common areas. Such products included First-Daughter and White House adviser Ivanka Trump’s fashion line, which she shut down last year. The Retail Risk conference series is attended by more retail risk and loss prevention professionals, around the world, than any other. Theft of physical items. That’s going to continue to be a big challenge,” he said. through methods such as Denial of Service attacks and others). A report from WCRI sheds light on how a coronavirus-related recession could affect return-to-work. This is especially true of millennials who, according to a CompareCards.com report, frequently decide to get political with their wallets. NDPPS 755728 The clear and present risk is that the consumer is moving faster than the retail business can adapt. Tail risk has two main applications for the retail investor. Provide employees with accurate information about COVID-19, how it spreads, and risk of exposure. The Retail sector brings its own unique challenges and potential pitfalls. (the latter two options being forms of unsecured banking credit). CDC twenty four seven. Federal Reserve Bank of St. Louis. This includes retail pharmacies and drug stores, grocery stores, and other entities that sell essential supplies. The EPA has phased out the R-22 and here are the phaseout details you need to know. The risk arises from the observation that more concentrated portfolios are less diverse and therefore the returns on the underlying assets are more correlated.. Liability claims such as slip and falls are still one of the biggest issues in … … Move the electronic payment terminal/credit card reader farther away from the cashier in order to increase the distance between the customer and the cashier, if possible. “The dependency of the retail industry on technology is only going to increase. The risk is that the investment’s value will decrease. A major advantage of retail insurance agencies for consumers is that they are accessible; most purchasers of insurance policies can work with a retail agent, while wholesalers only do business with retailers or consumers of specialty insurance. CDCINFO: 1-800-CDC-INFO (1-800-232-4636) | TTY: 1-888-232-6348 |. The rise in e-commerce, activist product boycotts and an instability in international trade caused by Brexit and the U.S.’s trade war with China, make it even harder to predict how much risk the retail sector is exposed to. The first is simple awareness. White papers, service directory and conferences for the R&I community. If an employee is confirmed to have COVID-19 infection, employers should inform fellow employees of their possible exposure to COVID-19 in the workplace but maintain confidentiality as required by the Americans with Disabilities Act (ADA). Provide information on who to contact if employees become sick. &. Hackers stole data from up to 40 million debit and credit cards, leaving the company with a mangled reputation and costing them $18.5 million in settlements paid to states affected by the breach. Encourage customers to use touchless payment options, when available. Employers should not require a positive COVID-19 test result or a healthcare provider’s note for employees who are sick to validate their illness, qualify for sick leave, or to return to work. Nearly 74% of consumers turn to Amazon when they need to purchase a product and CNBC warns that statistic should keep retailers “up at night.” Overall, Amazon accounts for around 52% of the e-commerce market. Identify and Assess. David Perez, chief underwriting officer, North America, for Liberty Mutual's Global Risk Solutions, is ensuring the organization's underwriting talent is well prepared for tougher times ahead. Level Purple - Extreme Risk: Non-critical retail is closed for in-person services but may provide curbside pick-up and delivery. Whether their insurance future will be equally dire remains to be seen. Boycotts don’t appear to be going away anytime soon either. The risks facing a typical business are broad and include things that you can control such as your strategy and things beyond your control such as the global economy. Protect your store as best you can by staying on top of economic news about your local market as well as regional and national ones. Follow all applicable local, state, and federal regulations and public health agency guidelines. JP Morgan Chase reports that the average American family will shoulder costs of about $1,000 per year as a result of the tariffs. The trade war between the U.S. and China has sparked similar fears with dozens of retailers warning President Trump that tariffs could impact the supply chain and hurt retailers. Shoplifters and other criminals remain a major headache for traditional retail … “If you’re talking just a pure frequency and dollars I think that the leaders are still workers’ compensation claims, so employee injury,” he said. Set up designated pick-up areas. A stock’s tail risk gives you the realistic range of best and worst case scenarios you should prepare your portfolio for. 7) Talent Risk and the Aging Workforce Nadel noted that one of the top issues retailers are concerned about is the aging workforce. From PPE to growing natural catastrophes, these are the ways COVID-19 is impacting property. Younger workers are shunning the workforce with an all-time low of 35% of teenagers working or looking for a job in summer 2017. Buildings can flood, catch fire or succumb to heavy winds. Third party interruption losses can also occur if ransomware or malware infects a company’s computer system. A business risk is a future possibility that may prevent you from achieving a business goal. According to Nadel, these risks are only going to increase for retailers. Provide remote shopping alternatives for customers, including click-and-collect, delivery, pick-up, and shop-by-phone to limit customers in the establishment. Here are the most critical risks that experts have their eyes on. Coronavirus disease 2019 (COVID-19) is a respiratory illness caused by a virus called SARS-CoV-2. Both retail and wholesale insurance agencies offer specific advantages to different consumers. Here are seven critical risks facing the retail sector: 1) Natural Catastrophes For many insureds, property damage is one of the first issues that comes to mind after a natural disaster. (the latter two options being forms of unsecured banking credit). This is not thought to be the main way the virus spreads, but we are still learning more about this virus. VF Corporations owns several popular retail brands, including Timberland and Vans. And most recently Walmart is bracing for a boycott by the American Federation of Teachers for continuing to sell guns and one from the NRA for discontinuing the sales of specific ammunition types that are frequently used in assault weapons. “While we recognize the issues with China’s IP forged technology transfer practices, we ask ourselves if the cost of tariffs to US companies and consumers causes more harm than the problem they are trying to solve,” he continued. The risk for retailers is that customers become afraid of shopping due to the possibility that their data might be stolen. Mutual funds and exchange-traded funds (ETFs) are common types of retail funds. While boycotts don’t always gain enough traction to result in a drop in sales, many retailers still fear them — and they’re willing to drop products to end them. var zzp=new Image(); Limit close contact with others and maintain a distance of at least 6 feet, when possible. Many people remember the security breach that rocked Target in 2013. Consumer credit risk (also retail credit risk) is the risk of loss due to a consumer's failure or inability to repay (default) on a consumer credit product, such as a mortgage, unsecured personal loan, credit card, overdraft etc. … “Free trade agreements being on hold, being redrafted — it’s all occurred before but never with as little guidance as we are being given at the moment.”. She can be reached at. "Accessed Sept. 21, 2020. You will be subject to the destination website's privacy policy when you follow the link. zzp.src="https://tt1.zedo.com/ads2/p/l?a=3104026;c=3901000094;x=3840;n=3901;e=i;i=0;s=1;z="+Math.random(); Uncertainty in international trade, the rising popularity of product boycotts and the dominance of Amazon in the e-commerce market are just some of the risks retailers should keep on their radar. Wipe counter between each customer at checkout. In 2018, the Bureau of Labor Statistics reported that there were 757,000 retail openings in July, up by 100,000 from the previous year. One of the biggest risks for retail stores is the risk of crimes such as shoplifting, theft, embezzlement, or damage to the store and merchandise. $6). A major advantage of retail insurance agencies for consumers is that they are accessible; most purchasers of insurance policies can work with a retail agent, while wholesalers only do business with retailers or consumers of specialty insurance. Here are seven critical risks facing the retail sector: For many insureds, property damage is one of the first issues that comes to mind after a natural disaster. Retail Risk – London L.I.V.E™ is free to join virtually for all retail health, safety and risk managers, law enforcement personnel, bone fide academics and suppliers who have worked within the retail industry during 2020/21. 1 risk. 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