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What kind of control is bonding (i.e., buying insurance to protect against theft by cash-handling employees)?

1) Primarily preventive
2) Primarily detective
3) Primarily corrective
4) Primarily substitutive

User Micsza
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1 Answer

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Final answer:

Bonding, in the context of insuring a business against employee theft, is considered a Primarily preventive control as it aims to deter theft and mitigate financial loss before incidents occur.

Step-by-step explanation:

Bonding, or buying insurance to protect against theft by cash-handling employees, is a form of risk management control. In the context of the types of controls, bonding would be considered Primarily preventive. It is a proactive measure seeking to safeguard a business from potential financial loss due to employee theft before such incidents occur. It operates as a deterrent to theft and also provides a financial safety net, should the theft occur, mitigating the potential impact on the business.

Other approaches to crime control, such as retribution, incapacitation, rehabilitation, and restoration, also exist, and each serves a different purpose in the criminal justice system. Insurance as a preventive measure can overlap with some aspects of these strategies by reducing the opportunity and temptation for crime, thus indirectly contributing to prevention. In the example provided, if a cashier's drawer consistently comes up short, bonding not only covers the financial loss but also serves as an incentive for the employer to investigate, thereby potentially uncovering fraudulent activity and addressing it.

User Achin Kumar
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