Jewellery store heist highlights need for effective risk strategy

Natasha Maroun

The recent armed robbery at a jewellery store in Germiston, Johannesburg that resulted in the death of a policeman could be as a result of a new crime syndicate. As a result, it is crucial that retailers – particularly those holding high values of stock – ensure they not only have effective risk management strategies in place but can also offer trauma counselling should an incident occur.

This is according to Natasha Maroun, Managing Director of Gem & Jewel Acceptances - a specialist insurance underwriter, writing on behalf of Compass Insurance - who says such incidents can be hugely traumatic for employees and customers. “Any kind of robbery is a distressing experience for those involved but when it becomes as serious as armed robbery or potentially even a hostage situation then it is crucial for those affected to be given assistance in dealing with the aftermath.”

She says a specialised insurance policy is able to offer a number of benefits specific to the retailers’ needs, such as trauma counselling, and shoplifting cover. “This can be very relevant at this time of year, as the risk of theft or robbery is magnified in the festive season, particularly as retailers increase stock levels to take advantage of the increase in demand.

Maroun says even though there is an increase in security in malls in general over the festive season, the risk of armed robbery is always there.“Crime syndicates know there are many innocent customers and staff in stores, which reduces the likelihood of a retaliation by the security or staff in a specific store, for fear of innocent bystanders being harmed.”

She notes that implementing some form of access control at a store can be a very effective risk management measure. “In fact, sometimes an access control system is a necessity for an insurer to even consider insuring the risk, particularly if the shop is located in what is perceived to be a high risk area. However, this is not always the case and installing an access control system is not a factor used in determining the premium, so it cannot be used as a bargaining tool.”

“It is advisable for any jewellery retailer to consider some easy safety and risk management tips such as ensuring that sufficient trained staff are on duty at all times. Given that retailers also take on extra staff during busy periods, it is vital that students and inexperienced temporary staff are under supervision at all times.”

Maroun says other easy-to-implement advice includes keeping the number of items shown to any customer to a minimum at one time. “It is also important to be aware and vigilant when potential customers arrive in large groups or are joined during the visit by other people. If any suspicion arises, the store should have an action plan in place, for example, the panic button is to be activated in certain agreed circumstances, even prior to an adverse event occurring. Ideally this panic button should be linked to the centre security to ensure a quick response.”

“One can implement appropriate security measures yet one can never really determine when, where or how a theft may occur, so the best safety measure any jewellery store can have in place is a comprehensive insurance policy to cover against any loss,” concludes Maroun.