Deep Dive: Reducing the Risks Associated with Armed Robberies
Image: Marijuana Venture
Armed robberies of cannabis stores has arguably become the biggest issue in an industry filled with big issues.
These robberies have a severe, long-lasting impact on employees and customers, and some are even resulting in injury and death.
It is well established that the best solution for these frequent armed robberies lies in the hands of federal regulators who have the ability to allow cannabis operators to access to the national banking industry. This would reduce the amount of cash on hand, which would reduce the incentive for criminals to rob cannabis stores.
However, until rederal banking reform happens, more creative ways to reduce armed robbery risk must be found.
Marijuana Venture Magazine recently published an article from Brenda Wells, who is a noted expert on risk management.
Three of her ideas are listed below - the whole list is a worthwhile read.
1: Utilize New Age Payment Systems
Cryptocurrency seems to be a natural solution to the cash problem, although currency volatility and accessibiliy remain obstacles for mainstream adaptation. Cash App & Venmo could be two other digital payment systems worth experimenting with.
While these alternate payment systems may have their own set of challenges, they are the clearest path to reducing the number of cash transactions, which would reduce the amount of cash on hand at stores.
2: Private or pre-paid accounts
A throwback to having a tab at the general store, a pre-paid account would mimimize the frequency of cash transactions, and could serve as a valuable customer loyalty program to boot.
In this scenario, customers could pay a monthly contribution to their account, which would reduce the amount of cash on hand, and increase convenience for regular customers.
Compliance with statewide regulations would need to be accounted for, but this tactic could be an interesting one with multiple benefits.
3: Drop safes, multiple safes and signage:
It is worth noting that convenience stores, along with liquor stores, once were a prime target of robberies. Transitioning to mostly cashless payments has helped drastically reduce these robberies, but these type of stores have developed time-tested techniques for dissuading at least a portion of would-be robbers.
Taking inspiration from convenience store and liquor store best practices could dissuade some armed robberies. Drop safes cannot be opened by employees, and if that fact is clearly stated outside the door, it could eliminate some robberies.
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Making efforts to reduce risk is a key move for any cannabis business under threat of armed robbery. While federal banking reform is the ultimate risk reduction, implementing small measures can go a long way towards keeping employees & customers safe.
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