Security Metrics and Testing

A metric is a measure used to check on the efficiency, effectiveness, and productivity of a specific deliverable. Most organizations use different metrics to measure concerns such as profitability, cost efficiency, gearing level and customer loyalty. In a retail department store, the metrics applied focus on the efficiency and cost reduction variables. As a security manager, the metrics have to support the security and cost related impacts on the overall business.  A number of security cameras available are a metric that focuses on theft issues. The CCTV cameras installed serve one purpose, to record the ongoing activities within the specified radius. Installation of cameras with good pixels captures the images from a distance and a person can easily detect the person spotted. The cameras will monitor people who enter the stores and leave the stores. Once people realize there is a camera recording their activities, they drop their bad intention and focus on developing the business. The cameras help reduce the theft of stocks in the stores hence reducing losses attributable to the business.  ‘Number of orders’ is a metric that checks orders placed in a particular period. The metric will help close the loopholes available for pilferages (Menasce, & Almeida, 2002). No orders made can exceed a certain limit without the consent of the security personnel. The authorization person ensures proper records of the orders and their frequency of ordering match. Therefore, the losses regarding the items in transit and the ones in stores are minimized.  Cost per item held in the stores amounts to a decision metric. The stocks in the stores require monitoring. The aim is to minimize any chances of theft and minimize losses attributable. Each unit held attracts a cost that may lead to losses if mismanaged. The overall costs relating to units in stores have to be accounted and policies established to control receipts and issues.  An item per purchase is a relevant metric in the retail business (Gunasekaran, Patel, & Tirtiroglu, 2001). The security issue is a major issue that affects many businesses. A retail business requires the input of security personnel to manage the inventory. When a purchase is made it is relevant to record the items and generate a link that shows the balances. The aim is to identify the number of items issues. The items help in decision making allowing the computation of orders to be made and items issued. The costs associated with the items include the carrying costs and insurance costs that would have an impact on the overall performance of the business. Whenever there is a rise in the number of items it is necessary to ensure the cost of the products is monitored. The aim is to avoid more costs that reduce the sales of the business. Similarly, it is important to ensure customers purchase more goods to encourage the flow of the items into the store or out of the store.  The profitability models and efficiency models are the best to use when establishing the success of the metrics. The use of profitability rations indicates the performance of the business. Net profit margin ratio is an important ration when evaluating success. The profit of the business depends on the sales and costs incurred in a financial year. When the sales are high and the costs incurred low, the net profit has to be high. An increase in profit shows that the business is a going concern. Therefore, the metrics employed by the security team contribute to the reduction in costs related to stocks. The losses minimized imply that less cost is required for maintenance. The current ratio is significant in establishing the ability of the business to settle its liabilities. The ideal ratio provides a measure to compare the ability of the business to continue as a going concern.  Efficiency relates to the ways employed to reduce the cost related to the business. the extent of reducing the costs proofs that the business managed to reduce the losses to minimal and insignificant figures. Monitoring the items in the store will minimize pilferages, obsolescence, overstocking and understocking. Understocking will attract stock-out costs which affect the business negatively. It reduces the profit and ruins the business reputation. To ensure efficiency the number of orders metric used helps to identify the size of the order to be made. It is possible to use the metric against the required demand per annum of the business.  The return on investment is a metric that measures the level of return received from the use of an investor’s money (Damodaran, 1996). The investment rate indicates the viability of the business and encourages the investors to sacrifice and invest their money. Therefore, at the end of the financial year, it is crucial to establish the performance of a business and determine its viability as a going concern. The performance will assist in decision making. Any business organization aims at multiplying the owners’ equity. It is possible to duplicate the investment if all the necessary actions are considered.

References

Damodaran, A. (1996). Corporate finance. Wiley. Gunasekaran, A., Patel, C., & Tirtiroglu, E. (2001). Performance measures and metrics in a supply chain environment. International journal of operations & production Management, 21(1/2), 71-87. Menasce, D. A., & Almeida, V. A. (2002). Capacity Planning for Web Services: metrics, models, and methods (p. 51). Upper Saddle River, NJ: Prentice Hall PTR.