22 Jul 2022

114

Risk Assessment and Recommendations at Walmart

Format: APA

Academic level: College

Paper type: Coursework

Words: 2381

Pages: 8

Downloads: 0

Introduction 

Walmart Inc. is an American based retailer with headquarters in Bentonville, Arkansas. Precisely, Walmart is located on 702 SW 8th St, Bentonville, Arkansas (Walmart, 2019). The company operates a chain of supermarkets, wholesale and retail stores in the United States of America. Walmart has expanded its services to attract the global market with its competitive advantage over the other retail stores both in the US and in the other countries (Walmart, 2019). With 2.3 million employees across the globe, Walmart's leadership has had to work extra in its roles to ensure that the company's processes and services are moving on well. Additionally, Walmart has to ensure that it has current risk assessment and mitigation procedures to ensure that the employees both in its location and in those transporting goods are safeguarded and impending losses are mitigated in good time (Walmart, 2019). Thus, the company invests substantially in the risk assessment procedures alongside the various departments in operation within the company. The paper will look at the security threats that Walmart faces in its daily activities band identify the multiple strategies that can be used to overcome the challenges such as those involving the cyber and communications security, workplace violence prevention, emergency and response to the crisis (Walmart, 2019). The other areas that the paper will focus on are the selection of employees, prevention of burglaries, property damage and personal security. The paper will also focus on the other areas that include unethical business practices, training for safety procedures within the organization, the liaison activities with the first responders and security professional organizations, and the other security issues that pertain to the location of the company. The paper will assume an investigative position on the safety and security of the various procedures in Walmart and the solutions that can be given to addressing the issues that are brought about by the complete or partial deficiency of the safety and security solutions in the company. 

Project Background 

Cyber/Communications Security 

Walmart operates in an age where cyber insecurity has affected many companies with some of them being forced to pay ransoms that affect their financial performance. Walmart has integrated a comprehensive system that counteracts cybercrime activities both in the US and in the other countries. The management at the company ensures that information is stored and distributed from a single server, which ensures that there is no access to the private information, by the third parties. However, the increasing complexity of the cyber-attacks that have been reported in the United States of America poses a manageable threat to the company which necessitates the review and changes to the existing system that enables the company to reduce the dangers that cybercrime in the different parts of the world poses. 

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Workplace Violence Prevention and Response, Including Active Shooter Threats 

Workplace violence has been reported to occur in the various workplaces across the United States of America (Souza, 2016). When they happen, workplace homicides and other sagas gain a lot of media attention. In its history, Walmart had an Amarillo based store with workplace violence. It was reported that a worker who was furious for not being promoted in his work took his manager and another employee hostage. The police arrived at the store in good time and shot the worker without having reports of any injuries or deaths in the situation (Souza, 2016). Inspired by the case in Amarillo, Walmart has been stringent on the implementation of workplace prevention strategies, which guard the employees and customers against fires, severe weather, bomb threats, and guns. 

Crisis Management and Response 

As mentioned earlier, Walmart has come up with a comprehensive strategy that safeguards and ensures the security of the workers and the customers while on the various stores across the United States of America and in the rest of the world. After the case of the employee who had his manager and another member of staff in hostage, the retailer has implemented tactics that ensure the workers are safe in the event of gun and bomb attacks which may happen at any time. Walmart has both experts and tools that enable the supermarket chain to withstand such issues. The company was also involved in the Advanced Law Enforcement Rapid Response Training (ALERRT) Center at Texas state university, which made the employees aware of what they are supposed to do during an active shooter scene. 

Employee Selection, Screening, Rescreening 

Risk management and mitigation at Walmart has attained new levels with employee selection, screening, and rescreening. The human resource management at the company has undertaken such moves in a bid to curb the insider threats that may arise at the location of Walmart's headquarters (Zimmermann, 2004). As the country's largest private employer, Walmart reported that it would begin conducting criminal background checks on the job candidates who are based in the US as well as in the warehouses of Sam's club membership. With the strict selection, Walmart has aimed at intensifying its risk assessment procedures for the threats facing the company from the inside (Zimmermann, 2004). The stringent worker selection and rescreening came after a Walmart based in South Carolina had its employee accused of sexually assaulting young girls. 

Physical Plant Intrusion 

Walmart has been faced with physical plant intrusions at the various stores across the country and in the other countries beyond the United States of America. Burglary has been common at the retail stores. A judge in Knox, Tennessee clearly stated that he views the regular shoplifters at the store as burglars. In the counteraction of physical plan intrusion, Walmart has not had a definite and comprehensive plan, which exposes the retail store to the imminent danger of the increase in shoplifting, which has encouraged burglary at the stores. However, the definition of burglary in the various states across the US has justified that a home or premise has to be locked to be burglarized. With most of the Walmart retail outlets being open twenty-four hours a day, the legal definitions of burglary have to be changed. 

Property Damage, Interior, And Exterior 

Apart from burglary, vandalism and theft as forms of property damage may lead to the shrinkage of assets in Walmart's headquarters. Property damage at Walmart occurs both internally and externally. One of the most significant causes of shrinkage at Walmart is caused by theft. Around 38% of the property shrinkage at Walmart is caused by shoplifting which has been stated earlier as a cause of security concern at Walmart's headquarters and in the other stores and outlets in and out of the US (Worstall, 2016). Another 35% of the property shrinkage is brought about by the theft by the employees who work in the various departments at the stores and outlets (Worstall, 2016). More shrinkage is caused by cashier errors, damaged goods, and the other administrative abnormalities. The company is therefore exposed to the issue of property damage. 

Personal Security 

Walmart stores and outlets based in South Carolina, the United States of America were faced with legal charges on the accusation of sexually assaulting young girls, which was perpetrated by the workers. The case had a significant impact on the thought of personal security among the customers and employees as they work at the Walmart's headquarters and especially the women. If the company does not address the issues of personal security such as those resulting in sexual harassment, its customers, and female employees may be exposed to the threat of personal insecurity, which will affect the whole company in the end. 

Information/Records Physical Security 

Walmart has been able to counteract the issue of cyber insecurity, which has affected many companies in and out of the US (Lin, 2016). However, the access of information physically at the headquarters is an issue that requires special attention by the management. The firm has worked round the clock to ensure that there is a constant flow of the supply chain, which is contributed to by the enhancement of physical security and the addressing of physical threats as soon as they are spotted in the supply chain management division (Lin, 2016). Walmart invested in a global supply chain security strategy that was initially aimed at identifying and providing for the quick responses against the physical threats that are realized at the retail store locations. 

Litigation for Inadequate Security 

Being the largest private employer in the United States of America, Walmart has one of the most diverse employee bases in the country. The company has been involved in quick hiring without the proper background checks being done on the employees who are regarded as potential candidates for various job positions. Reluctant supervision and retention of the employees with the undesirable character traits such as the few employees accused of sexual assault in South Carolina or the employee who held his manager hostage in Texas for the anger of not being promoted. Walmart does not conduct enough background checks on its workers, which leads to legal issues. Negligent hiring, supervision, and retention are some of the issues that the retailer needs to focus on to ensure that risks are mitigated more effectively in the future. 

OSHA Safety Standards Potentially Applicable At the Site and Violations 

OSHA standards are implemented in the various industries across the United States of America to ensure that the employees of the involved companies are safe and secure in their workplace environs (Maddux, 2016). Notwithstanding, the various companies across the country including Walmart violates some of the OSHA standards which places the employees at the various interior and exterior risks in the workplace. A Walmart store based in the state of Florida, the United States of America was fined for severally having an inadequate cleanup of blood spills, and the failure of providing hepatitis B vaccines for the employees assigned to clean up blood spills (Maddux, 2016). Furthermore, the employees responsible for cleaning up the blood spills were not trained adequately, which exposed the retail store to violations of the OSHA safety standards. 

Training Practices 

Training at Walmart has not attained its ultimate perfection. The company still faces shortcomings, which are brought about by the lack of proper integration of the training practices, which leads to exposure to more safety and security hazards. An example in the inadequate training that is offered to Walmart's employees by the company regarding the proper cleaning of the blood spills. The other example is the inefficient training that the company has attempted to reverse regarding the training of employees to deal with situations that involve the use of guns and exposure to bomb threats at the workplace. Walmart gas a long way to go with its training practices to improve both the efficiency and effectiveness of employees while at the same time reducing impending dangers to the retail store. 

Unethical Business Practices 

Walmart has severally been accused of unethical business practices within the US and beyond. Walmart has been accused of bribery and dishonesty in its history. Reportedly, the company bribed its employees to prevent them from joining labor unions or communicate with them. From a broader analytical perspective, Walmart bribes its employees in a bid to manipulate them in their work (Diermeier, 2017). To facilitate the same, Walmart encourages its employees who have complains to have them addressed directly to the corporate rather than having them dealt on by the management of the organization. Through that, the employees of Walmart do not require to involve a third party as they aim at solving their workplace disputes and complaints. Additionally, the move by Walmart denies the employees their right to unionize which is a risk to their welfare as workers of the company. 

Liaison Activities with First Responders, Security Professional Organizations 

Walmart has invested in advanced technology which is aimed at counteracting the effects of a disaster has there been one. Slightly more than a decade ago, Walmart proved its resilience for disaster by stepping in to affect the affected communities by hurricane Katrina and especially in New Orleans along the gulf coast of the United States of America (Walmart, 2019). The company is reported to have delivered truckloads of supplies and donated goods while at the same time coordinating relief efforts to the affected people. Furthermore, Walmart safeguarded the employment of the displaced associates by reinstating them in jobs in the other regions of the US thus helping them and their families get back on their feet. 

Other Security Issues Germane to the Site 

The other security issue that Walmart needs to consider while designing its risk assessment and mitigation strategies is the recording of phone calls by unauthorized parties. A fired worker of the company exposed the organization's style of safeguarding the employees' interests and guaranteeing their security at the workplace. The company defended its security practices despite the reports made that the security guards are involved in malpractices such as recording the private phone calls and the interception of the paper messages, both of which are violations to privacy at Walmart (Walmart, 2019). The company defended itself by stating that it is its corporate responsibility to have systems to monitor the threats that their information faces as well as their network and people. 

Risk Management Methodology 

Risk Probability Matrix 

The following is the probability matrix for the various threats faced by the headquarters of Walmart in Bentonville as the site for risk assessment. 

    Impact 
  Occurrence/ impact  Low  Moderate  High 
Probability  Unlikely  Unethical business practices  Recording of private phone calls and interception of paper messages  Natural disasters such as a hurricane 
Likely  Threats from inadequate employee screening  Personal insecurity such as sexual assault  Cybercrime 
Very likely  Violation of OSHA safety practices  Shoplifting and theft  Burglary 

Risk = probability × impact 

From the risk matrix above, the significant risks that Walmart faces and require special and immediate attention are burglary, cybercrime, and natural disasters such as hurricanes. The threats from inefficient employee screening, personal insecurity and the breach of privacy in the case of phone calls and paper messages require moderate attention. The occurrence of unethical business practices requires the least attention. 

Risk Assessment/Security and Safety Planning Instrument 

Observations Made at the Site 

The risk assessment observations made at Walmart's headquarters as the most preferred location prove that the company needs to work more in the counteraction of the various dangers that threaten the day-to-day activities of the retail store. The company lacks comprehensive burglar proofing which usually occurs as shoplifting since Walmart's stores and outlets are barely closed. The training of the employees to deal with natural disasters blood spills and gun-involved attack is also low and requires special attention. 

Specific Recommendations for Enhancing Security and Protecting the Organization's Assets from Harm or Loss 

To protect the company's assets from harm or loss, Walmart needs to come up with a more detailed risk assessment and mitigation summary. In the protection against burglary and theft, the company needs to have more security cameras placed at strategic places in and out of the stores which contributes to the promotion of security. Additionally, Walmart ought to have legal action taken against shoplifters and burglars in its stores and retail outlets. That will significantly reduce the loss of property. The employees need to be actively involved in ALERRT, which will enable them to gain meaningful information regarding controlling gun attacks at the workplace premises. The employees will also require valuable knowledge on the mitigation of effects brought about by natural disasters. 

References 

Diermeier, D. (2017). Wal-Mart: The Store Wars. Kellogg School of Management Cases , 1-16. 

Lin, E. (2016, April 20). Walmart integrates IoT and physical security management . Retrieved from https://www.asmag.com/showpost/20344.aspx 

Maddux, J. (2016). OSHA Standards: Why Do They Take So Long? Professional Safety , 61 (5), 

43. 

Souza, K. (2016, June 17). Walmart puts emphasis on workplace violence prevention, experts say companies should do more. TB&P . Retrieved from https://talkbusiness.net/2016/06/walmart-puts-emphasis-on-workplace-violence-prevention-experts-say-companies-should-do-more/ 

Walmart. (2019). Enhancing resilience in the face of disaster . Retrieved from https://corporate.walmart.com/2016grr/strengthening-communities/enhancing-resiliency-in-the-face-of-disaster 

Walmart. (2019). Our History . Retrieved from https://corporate.walmart.com/our-story/our-history 

Worstall, T. (2016, August 21). Walmart And Theft - How Much, Economically Speaking, Should Walmart Spend To Cut It? Forbes . Retrieved from https://www.forbes.com/sites/timworstall/2016/08/21/walmart-and-theft-how-much-economically-speakiing-should-walmart-spend-to-cut-it/#50bd76207643 

Zimmermann, A. (2004, August 12). Wal-Mart to Toughen Job Screening. The Wall Street Journal . Retrieved from https://www.wsj.com/articles/SB109226281621989153 

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StudyBounty. (2023, September 15). Risk Assessment and Recommendations at Walmart.
https://studybounty.com/risk-assessment-and-recommendations-at-walmart-coursework

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