COG – RISK & SUSTAINABILITY

Retail Risk Playbook

Welcome to the Retail Risk Playbook.
Please read through and initial the following risk standards, ensuring the protection of you and COG.

POS
POS Procedures Initial
I understand that POS1 is the master POS and all start of day (SOD), end of day (EOD), banking, stock
receiving and SOH query functions must be completed on POS1 only.
Team members are not authorised to price override or discount the retail value of merchandise
without formal approval/communication. Formal approval may include VM markdowns listings,
promotion communication, Area Manager approval.
I understand that voids are a high risk transaction on POS and must be avoided where possible. Voids
are strictly monitored by the Risk team and may be investigated.
I understand that all product processed through POS must be acknowledged as the correct style,
colour, size, quantity and a POS receipt must be provided to every customer upon purchase.
Team Members must not process transactions on POS for friends and family when there is more
than one Team Member on shift. In no instances can Team Members process their own personal
sales through POS.

I would like to request further training regarding the following;

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CASH HANDLING
Start Of Day (SOD) Initial
I understand that the most senior Team Member commencing SOD is responsible for counting,
verifying and declaring all floats by denomination prior to the commencement of trade.
Till Clearances Initial
I understand that Till Clearances must be completed by the most senior team member on shift, as
required to reduce excessive cash levels, reducing the risk of cash loss and threatening situations.
Prior to processing a Till Clearance, a ‘Contents Check’ on POS must be completed to identify if a till
clearance is necessary. The till must never be opened unless genuinely required.
I understand when completing a Till Clearance, cash must strictly be counted discreetly on the open
till drawer, out of view of customers. Cash must never be placed on the counter or counted in view
of customers.
Once Till Clearances have been counted and placed into a completed till clearance envelope, they
must be placed into the safe immediately.
Till clearances must only ever be completed using the ‘Register Cash Out’ function, with the total
value entered by denominations.
End of Day (EOD) Initial
The most senior Team Member on shift is responsible for ensuring all EOD cashing up procedures
are followed correctly.

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Cashing up can only take place once all customers have exited the store and the store has been
securely locked for safety purposes. The store must remain locked outside of trading hours to ensure
the safety of our Team Members. This includes start of day (SOD).
I understand that prior to approving your cash up on each till, a Trial Balance must be completed to
identify, locate/rectify any discrepancies, preventing false variances being declared.
I understand if a variance is identified, the Team Member responsible for cashing up must complete
a Variance Checklist and submit a Variance Form via the intranet.
Banking Initial
The most senior Team Member on shift must prepare and follow the relevant banking procedures.
After the banking is written up and prepared, it must be sealed in a tamperproof bank bag and placed
into the safe immediately.
(Excludes Cash Collection stores)
Outside of public holidays, banking must be completed daily before 2pm, Monday to Friday unless
authorise by your Risk Partner. I understand that failing to bank must be declared to your Banking
contact and Area Manager immediately.
I understand that under no circumstances can a non COG Team Member, non rostered COG Team
Member’s or unauthorised cash collection third party Team Member handle or obtain COG store
cash/banking.
(Excludes Cash Collection stores)
I understand when physically delivering the banking to the relevant bank, the delivery must not
contain any additional stops, the delivery pathway must be to the bank directly without deviation.

I would like to request further training regarding the following;

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SECURITY
Store Keys Initial
The intranet Key Register must be completed and up to date with all key holding team members at
all times. Store and Area Managers are the only team members authorised to issue a store key.
Store Keys must be attached to a non branded lanyard and kept separate from personal/non COG
keys for security purposes.
Under no circumstances can a store key be in the possession of an unauthorised COG team
member or non COG team member.
No Team Members are permitted to re-enter the store after hours unless previously authorised by
your Area Manager or Risk Partner.
In the event that the keys belonging to a COG team member are lost, misplaced or stolen, you
must advise your Area Manager/Risk partner immediately.
Retail Operations Initial
I understand that all POS login details, payroll IDs, Alarm and backroom security codes are to be kept
confidential.
I understand that all store doors must remain locked outside of trading hours without exception in
order to protect Team Member’s safety.
I understand that all rostered Team Members are responsible for ensuring Store doors are
immediately relocked when rostered Team Members/delivery Team Members enter and exit the
store outside of trading hours.
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I understand and agree that I have a duty of care to report any activity that has or has the potential
to cause or contribute to any type of loss, damage or Risk to the Group/COG Team Members.
Escalation must be communicated to Management/Risk or via the Confidential Hotline.
All Cotton On Group employees must have their bags checked every time they leave the store.
(In the USA, Team Member bags must be checked prior to clocking off to shifts only)
I understand stores with security measures such as ink tagging, CCTV, CCTV monitors, covert
cameras must be in use and fully operational at all times with any known faults reported to your
Area Manager and Retail Risk Partner.
CCTV/Covert/Overt (hidden/unhidden) Initial
I understand that within compliance to local legislation, surveillance may be installed in store
without warning/notification and footage used as evidence in the event of serious misconduct.
I understand, if applicable, the Store Security Alarms must be activated anytime the store is not
manned.
I understand that under no circumstances are Team Members authorised to tamper with security
equipment.

TMs are not permitted to record footage of CCTV. This includes using personal phones to obtain
footage from CCTV screens.

I would like to request further training regarding the following;

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LOSS PREVENTION
Internal and External Theft and Fraud Initial
Cotton On Group employees are not permitted to borrow, lend, steal or withhold monies from the
business under any circumstances. This includes however is not limited to, floats, trade cash, till
clearances or banking. Non compliance will result in a Summary dismissal and appropriate legal
action.
I must adhere to the current staff purchase and discount programs at all times. This includes
discounts available to me and my friends and family. I understand that providing or accepting a
discount percentage greater than what is entitled is considered fraud and may result in a dismissal
and appropriate legal action.
All of my Cotton On Group purchases must be processed onto my payroll ID. This includes items
without discounts such as Foundation products and sale items.
Under no circumstances can I process Team Member or VIP discounts without requesting and
viewing photo identification.
Team members are not permitted to personally sign up to the Perks program. Team Members are
not authorised to create intently falsified Perks member accounts. Team Members are not
authorised to falsely accrue Perks points, falsely redeem Perks benefits, sell or offer unlawful Perks
rewards or misuse Perks to meet KPIs or Perks related competitions/KPIs.

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Dishonesty in regards to hours worked and declared is considered fraud and may result in dismissal
and relevant legal action.
The Cotton On Group accept no liability for any personal belongings brought to work, should such
belongings become damaged, destroyed or stolen.
Not processing a sale through POS and declaring cash is deemed fraud and will result in dismissal
and relevant legal action.
Completing false or fraudulent refunds is considered fraud and may result in dismissal and necessary
legal action.
I understand that customer service is the recommended external theft deterrent and under no
circumstances are Team Member’s to leave the store in pursuit of suspected shoplifters.
I understand that all accounts of theft or attempted theft must be documented and submitted via
an incident report form via the intranet.
I understand the Confidential Hotline is a resource available to all COG Team Members in order to
escalate any concerns whereby the Team Member may not feel comfortable escalating to their
Managers. The confidential hotline is managed by a third party and the team member making the
report has the option of disclosing or not disclosing their personal information.
Investigations Initial
I understand that the Risk & Sustainability Team may commence an investigation at anytime as a
result of questionable behavior or transactions. I understand that if I am required to attend a formal
meeting with the Risk Team in relation to an investigation, I am entitled to receive a request in
writing, stating the potential allegations, with the option of bringing a silent support person. (This
process may vary slightly depending on local legislation).
(I also understand that general loss discussions may be had without warning).
PCI & Privacy
I understand that all customer information is to remain confidential and must not be shared or used
outside of COG. I agree to conduct regular checks on eftpos terminals to ensure they have not been
tampered with and any issues to be reported to Retail Risk.

Shrink
I understand that Shrink refers to lost, stolen or mismanaged product that cannot be sold,
Impacting on sales and profitability.
I understand I am responsible for adhering to all relevant processes, best practices and inventory
management tools, supporting the reduction of Shrink.

I would like to request further training regarding the following;

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Inventory
Stocktake Initial
I understand that at a minimum, all stores will be Stocktaked once per financial year.

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I understand that Stocktake results are used to capture a Shrink % as well as identify other key
performance indicators (KPIs). These KPIs may be used as a performance measure for senior Team
Members.
Inventory Integrity Initial
I understand that inventory accuracy refers to my system SOH matching what is physically located
in store. Inventory accuracy is captured and reported at the point of Stocktake.
I understand that when processing inventory through POS, I must always acknowledge the correct
style, colour, size and quantity to maintain inventory accuracy.
I understand that under no circumstances am I to write off product using the red carton process
unless the product meets all write off criteria.
Stock Receiving Initial
I understand that the most senior Team Member on shift or Inventory Manager is responsible for
counting and signing for the total number of cartons physically received, ensuring the delivery
address is correct on each carton and accepting the delivery on POS1.
I understand that transfers must be accepted on POS1 immediately after the delivery has been
physically received, to ensure inventory integrity and maintain accurate and speedy replenishment.
I understand a Delivery Log must be raised for missing deliveries, modified delivery quantities, if a
delivery is missing from POS1.

Voluntary Withdrawals & Recalls Initial

I understand that a Voluntary Withdrawal is decision made internally by the Cotton On Group, to
remove a product from sale, due to potential quality, design or low risk scenario.
I understand that a Recall is the mandatory removal of a product, instructed by a governing body as
a result of a legal, safety or compliance breach and must be actioned immediately, as per the
instructions provided.
I understand that I must comply with the instructions issued relating to the Voluntary Withdrawal,
Recall or Health Check within the given timeframes and these cases must be treated with urgency
and care.

I would like to request further training regarding the following;

____________________________________________________________________________________________
____________________________________________________________________________________________
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Health & Safety

Duty of Care Initial
I will avoid any actions that may result in the risk, health, safety and/or wellbeing of myself or others.
I will immediately report hazards, incidents, near misses and injuries to my Manager, in addition to
raising an incident report form. I will follow safety procedures and training at all times.
I commit to adhering to the VM Safety Non-negotiable’s at all times. Never work at height in-store
alone. Only use a ladder if I can maintain 3-points of contact. Never move shelving containing stock
or mannequins and will work from the top down. Only ever display FULL SIZE mannequins at floor

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level, on purpose built platforms or tables. Use common sense and if there is a task that is likely to
cause injury, I won’t do it and I will challenge this with my Manager.
I will always use safe manual handling techniques when moving, pushing, unpacking or handling
equipment, cartons or fixtures/fittings. When in doubt I will refer to the Safe Manual Handling
Techniques Poster in-store and appropriate You Learning.
I will ensure that all exits/emergency exits are kept clear at all times and will never store boxes or
fixtures in a way that blocks exits.
I understand that aisle ways must be accessible at all times, including both shop floor and backroom.
I will never block firefighting equipment, including the electrical switchboard and fire
extinguisher/hose.
I understand that ‘being hit by falling objects’ is one of the leading causes of injury and therefore
will NEVER store anything in the backroom above 1.8m/6ft unless authorised by Risk Health &
Safety.

I would like to request further training regarding the following;

____________________________________________________________________________________________
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Date________________________________________________________________________________________
Full Name___________________________________________________________________________________
Base store No.________________________________________________________________________________
Base Store Name______________________________________________________________________________
Facilitator Signature ___________________________________________________________________________

I understand and agree to the above______________________________________________________________

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