Loss prevention is also known as securtiy, profit protection, or risk management. Losses are often a function of retail inventory shrinkage, which can result from employee thefts, customer thefts, or from errors in records. In the retail industry, the average amount of money which is presently surrendered to shrinkage is more than the average net profit. Loss prevention has a return to investment ratio which is higher than that of any other function in a company. When an item is stolen, not only the cost price is lost, but also money which has been invested in shipping, advertising, salaries, rent, and taxes. Although security personnel can help reduce losses, sales personnel can be most effective in preventing shrinkage. Individual points are illustrated through color slides. Other supplementary materials are not provided.