Much like citizens who are victims of crimes, businesses can complete an Impact Statement for Business (ISB), setting out the impact that a crime when brought to court has had in respect of direct financial loss, operational disruption and reputational damage. Courts will take the ISB into account when determining sentence.
The process of producing an ISB also enables directors to understand and quantify the costs of crime for the business, and then evaluate the ‘Return on Investment’ (ROI) from security protection and loss prevention counter measures as well as civil recovery proceedings, says Simon Chapman, pictured, managing director of the security contractor Lodge Service.
If directors choose not to make a statement at the outset of the proceedings, they may not have another opportunity to make one later on. This is because the case may be dealt with by the courts quickly. The Impact Statement for Business (ISB) itemises areas where an organisation may find losses. These include:
1. Direct financial losses: assets lost or stolen
2. Damage to buildings and property
3. Other, indirect financial costs: loss of custom; impact on consumer confidence; staff time; expenditure on security measures; medical expenses; costs of contractual staff
4. Non-Financial Impact including reputational damage and physical injuries sustained by staff or customers
These details can also be used for the preparation of Civil Recovery proceedings, which enables organisations to recoup losses through civil law remedies, says Simon Chapman.
Service users can pursue compensation for associated investigation and management costs of Civil Recovery including: collecting witness statements; examining supporting data; reviewing CCTV footage; interviewing members of staff; and further investigations.
This remedy is useful if police decide not to act, says Simon Chapman, or the offender is given a fine (Fixed Penalty Notice, FPN) requiring no court time. In that case there will probably be no compensation for commercial losses, or for the staff time and other costs to the organisation. Visit www.lodgeservice.com.
