1. Developing and Applying Constructive Analytical Intelligence for Successful Loss Prevention Presented By King Rogers, CEO The King Rogers Group LLC

2. Definitions Data Analysis Intelligence Information For Action Video analytics: –Video = Data –Software created to make video more intelligent (i.e.: object left behind, people counting and tracking, people classification [gender, age, etc.], facial recognition, etc.) Intelligence Analysis Data

3. Definitions (Cont’d.) Intelligence Analysts: –Tasked with developing and responding to data based business intelligence (Big Data) along with many other assignments tossed into their laps by the boss –3.7 different roles according to The Data Warehouse Institute –Many business analysts end up reporting into IT (kiss them goodbye) –Missing hero potential for Loss Prevention

4. Industry Trends Security intelligence Part-time workers Social media - Brand protection Video analytics beyond surveillance Doing more with less VSaaS VAaaS (EBR as a Service)

5. Business Challenges Budgets –R.O.I. Responsibility for all the negative line items on the Profit & Loss statement –Food costs as a percent to sales –P.O.S. losses Credit fraud Cash shortages –Cash-in-transit losses –Shrink –GL/WC –Robberies

6. Business Challenges (Cont’d.) Part-Time Workers –Pre-employment Screening –On-Boarding –Awareness Programs –Social Media Issues (Branding) Technology –Video technology selection and deployment –EBR Software –Network Connectivity

7. A seven year management employee issue was detected, investigated and resolved within two weeks after starting disciplined audit service. Value: $400 a week = about $20,000 per year. Manager - Cleared Items Report = annualized loss of $5215. Manager – Small Transaction Report = annualized loss of $3671. Business Case Examples

8. Business Case Examples (Cont’d) Manager – Reopened Checks Report = annualized loss of $6546. Manager - $0 Subtotal Report = annualized loss of $6183. Misunderstood discount policy = almost $5000 annualized in one location. POS System error created profit erosion to a small chain of $102,000 annualized.

9. Business Case Examples (Cont’d) Video-based auditing enabling detection of using unauthorized meal discounting (sweethearting) is one of the most frequently detected causes of profit erosion. Double discounting quarterly improvement for consecutive quarters was 30% to 36% more in audited restaurants vs. unaudited units.

10. Business Case Examples (Cont’d) Social Media audits, detection examples:

11. Summary Rules-based exception software Maximizing value from video Analysts: in-house vs. outsourced Total Cost of Loss Control Ownership (TCOLCO) Why?

12. The Why P & L negative line item ownership Brand protection Profit enhancement The five tactics of successful security/loss prevention……………

13. Tactics RecoveryDetection Investigation Resolution Prevention

14. Thank You! King Rogers (612) 840-2201 king@kingrogers.com