Article published by the Beavis Morgan group, accountants, tax, wealth planning and business advisers.
Information is key to minimising risk in an organisation and there is no greater internal vulnerability than human capital risk.
According to the latest Kroll Global Fraud and Risk Report*, 2021 was an unprecedented year for corporate risk, with firms simultaneously facing a multitude of threats, including vulnerability to internal fraud, increasingly complex supply chains, and the impact of COVID-19 measures.
While many businesses are bolstering defences by putting proactive measures in place such as data analytics, 57% of companies surveyed reported a very significant impact of illicit activity such as fraud, corruption and money laundering from within their organisation, with 48% saying they had been very significantly impacted.
A company can have the best possible compliance processes in place on paper, but if the human elements of the chain aren’t well managed, educated or equipped to act, non-compliance or illicit behaviour will continue to prevail and go undetected.
An objective view to the decisions made around hiring, promoting, retaining, and dismissing employees is a key component of any successful strategy to curb the risk of fraud, bribery and corruption.
In today’s complex environment, more and more we too are seeing that the biggest fraud threat to companies comes from within. Businesses must therefore have a tight grasp on their recruitment processes and proactively seek to know who they are bringing into the organisation to actively mitigate internal risk.
High level employee screening is designed to protect the business from financial, reputational and security risk. Not only does it verify candidate disclosures, but such assessments also provide information that might fall below the voluntary disclosure requirement so that a balanced, fully informed commercial decision can be made. Adding to this, screening programmes can strengthen a business’ defence should a lawsuit arise, by demonstrating ‘duty of care’ in the employment process.
Pre-hiring background checks are therefore essential in ensuring that you are making the right employment decisions and protecting your business.
Capcon, a Beavis Morgan group associated company, offers a tiered approach to Employee Screening, from entry level checks to more comprehensive high level review programmes for key executive hires. Their range of intelligence, protection and security services, which includes employee screening for organisations pre-trading, are provided to businesses in the UK and worldwide.
To find out more about how employee screening can benefit you and your business, contact your usual Beavis Morgan Client Partner or Capcon directly: