Risk & Compliance magazine: interview with our CEO
Interested in employee integrity due diligence and pre-employment screening? Or are you engaging in a merger or acquisition, an IPO, engaging suppliers, contractors, or new clients and looking for third-party risk management solutions? Background checks and necessary screenings are vital to avoid horror stories and taboo tales that occur within HR, your business or even your brand – simply investing in sufficient screening can save you time, money and heartbreak.
Learn the benefits and best practises of background investigations from the industry leader Mr. Z. Anjum, CEO at CRI Group.
Click here to download the insights on Background investigations in a one-on-one interview published in Risk and Compliance magazine, 2019.
Have you read?
- Brexit poses new bribery challenges, ISO 37001 provides solutions
- Bribery and corruption plague Middle East, how can ISO 37001 help?
- As South Asia Grapples with anti-bribery compliance, ISO 37001 provides solutions
- Whitepaper: Organised catastrophe of international Pakistan airlines
- Rolls-Royce Case study: Ethics & Compliance
- ISO 37001 FAQ
- Are you ready for ISO 37001?
- Don’t have an ethical code of conduct? Your organisation needs one
Who is CRI Group?
Based in London, CRI Group works with companies across the Americas, Europe, Africa, Middle East and Asia-Pacific as a one-stop international Risk Management, Employee Background Screening, Business Intelligence, Due Diligence and other professional Investigative Research solutions provider. We have the largest proprietary network of background-screening analysts and investigators across the Middle East and Asia. Our global presence ensures that no matter how international your operations are we have the network needed to provide you with all you need, wherever you happen to be. CRI Group also holds BS 102000:2013 and BS 7858:2012 Certifications, is an HRO certified provider and partner with Oracle.
In 2016, CRI Group launched Anti-Bribery Anti-Corruption (ABAC®) Center of Excellence – an independent certification body established for ISO 37001:2016 Anti-Bribery Management Systems, ISO 37301 Compliance Management Systems and ISO 31000:2018 Risk Management, providing training and certification. ABAC® operates through its global network of certified ethics and compliance professionals, qualified auditors and other certified professionals. As a result, CRI Group’s global team of certified fraud examiners work as a discreet white-labelled supplier to some of the world’s largest organisations. Contact ABAC® for more on ISO Certification and training.
Can you Run an International Background Check?
Pre-pandemic, global workforce mobility was an increasing trend. The demand for skilled workers had put employers on a hunt worldwide. According to a Finaccord research study, the total number of expatriates worldwide amounted to around 66.2 million in 2017 – which is 0.77% of the total global population. This figure had grown at a compound annual rate of 5.8% since 2013. By 2018 the global expatriate population had reached 66.2m and was predicted to rise to 87.5 million by 2021. And as of today, according to The Expat Survey, 232 million people are living outside of their nation of origin.
According to HSBC Annual Survey 2020
Finaccord forecasted that the number would reach around 87.5 million by 2021. Fast forward to today, COVID-19 is creating a new reality. The pandemic has an enormous impact on workers’ mobility across borders, mainly due to strict limitations on international travel. Many businesses have shifted to online modalities, recruiting nationally and preparing for safe and fair recruitment practices once travel restrictions are lifted. None of us could have anticipated the challenges of 2020 brought about by the global pandemic. The impact on global mobility has been significant, with lockdowns and ongoing travel and immigration restrictions affecting the majority of markets around the world. The latest HSBC 2020 report with 40 countries participating
The implementation of remote working is broader and deeper than most organisations realise. To be successful in the long term, a structured approach is needed and a significant investment to change corporate culture.
Overseas recruitment
We understand the complexities and requirements businesses face with overseas recruitment and the need for international employee vetting to ensure your candidates meet the job-specific requirements.
COVID-19 changed how your workforce is working.
The odds are good that the pool of top candidates for an open position may include someone from a foreign country. Along with making sure that person is right to go in terms of the documentation needed to live and work in the U.S., do you run an international employment background check in addition to a domestic one? What about a criminal background check? How about a credit check?
The answer to all is yes, especially if your candidate has recently relocated to this country. You need to verify that the information on his or her resume is accurate, and be informed about his or her criminal past, just like you would for any other candidate.
The good news? Verifying education and references internationally are both relatively straightforward. For education verification, a phone call to the schools the candidate claims to have attended will do the trick, although some schools will only allow the student to request those records. Similarly, a phone call or email to the listed reference is usually all that’s needed. However, the language barrier can be a significant stumbling block in both cases.
Unfortunately, conducting an international background screening is a complicated matter, and without the capabilities, you will face a tangle of bureaucracy and red tape. Here’s why international background screening is difficult without experts:
No Global Database
In this age of big data, smart everything, and increasing concerns about national security, you’d think there would be one central, global database where people could check, at the very least, a candidate’s criminal history. There isn’t. To run any pre-employment screening internationally, you need to contact the candidate’s country of origin.
Each Country Has Its Own Rules
Country rules vary in storing and releasing data about its citizens. Where to go to get the information varies, too. You can work through their embassy in Washington, D.C, for some countries. For others, you must request the data from the country directly. Some prohibit U.S. companies from obtaining records, and some have endless hoops to jump through and a mountain of red tape to untangle. And the documentation you need to provide to get the records varies by country. Photographs, fingerprints, parents’ names, birth certificates, proof that the candidate applied for a job at your company — the variations are seemingly endless. It’s no mystery to see why it will take a while, up to 20 days or more if you get any information at all.
Employment information Won’t Be Uniform.
If you’ve run a successful employment background check on a candidate from a specific country before, don’t expect to get the same results again. Why? In many cases, it’s up to the employer to decide whether to release any information.
Credit Score? What Credit Score?
Each country has its way of reporting credit and debt. While some are similar to the U.S., others don’t keep those sorts of records at all, and still, others have their own rules about who can and can’t get access to that information.
Bottom line, the value of remote working, now and after the crisis
Remote working is an opportunity for your organisation to work more sustainably and reap the medium to long term benefits. With less office space, less commuting, fewer business trips, shorter breaks, greater focus from employees and fewer short absences due to illness. However, it is more important than ever to run background, employment, and credit checks to make informed, solid hiring decisions. Still, the process is difficult and time-consuming if you’re dealing with another country, leaving you with a vacant position for longer than you had planned. This is the time to call in the pros.
CRI® Group Employee Background Checks
Employee background checks, also known as EmploySmart™, is a robust new pre-employment background screening service certified for BS7858 to avoid negligent hiring liabilities. We are a leading worldwide provider, specialising in local and international employee background checks, including pre-employment and post-employment background checks. Ensure a safe work environment for all – EmploySmart™ can be tailored into specific screening packages to meet the requirements of each specific position within your company.
How do you know the candidate you just offered a role to is ideal? Are you 100% sure you know that everything they’re telling you is the truth? 90%? They showed you a diploma; how do you know it’s not photoshopped? Did you follow the correct laws during your background checks process? Employee background checks and necessary screenings are vital to avoid horror stories and taboo tales within HR, your business, or even your brand – simply investing in a sufficient screening can save you time, money and heartbreak.
CRI® Employee Background Checks are an investigation into a person’s character – inside and outside their professional lives. Some checks you probably already carry out in-house, such as candidate’s qualifications (documents provided), work history (with a reference check), right to work in the country and even a quick social media presence scan.
However, we provide a full in-depth background screening service for candidates and employees at all levels – from senior executives through to shop-floor employees:
- Address Verification (Physical Verification)
- Identity Verification
- Previous Employment Verification
- Education & Credential Verification
- Local Language Media Check
- Credit Verification & Financial History (where publicly available)
- Compliance & Regulatory Check
- Civil Litigation Record Check
- Bankruptcy Record Check
- International Criminal Record Check
- Integrity Due Diligence
- and more.
Meet Soraia Antunes, Chief Marketing Officer
Soraia is a technically and commercially astute professional with over a decade of B2B and B2C experience across various industries and cultures on a global scale. Who loves challenges and believes in enhancing customer loyalty via high impact marketing and communication strategies combined with engaging visual identities. She is passionate about creative excellence and driving innovation while influencing key stakeholders.
Track record in significantly enhancing a company’s brand market performance/effectiveness and profitability by improving name recognition, building credibility and inspiring employees.
Feel free to reach out.
LET’S TALK!
e: soraia.antunes@crigroup.com | LinkedIn
Reach out for any marketing related questions
Languages spoken: English, Portuguese
Background screening: 10 things you should know
Hiring new employees is an essential part of operating, and growing, a successful business. It also presents an inherent risk to any organisation. According to popular employment site CareerBuilder.com, “58% of hiring managers said they’ve caught a lie on a resume; one-third (33% of these employers have seen an increase in resume embellishments post-recession.” Background screening
Here’s another statistic: according to a survey conducted by CRI™, more than 75% of organisations conduct some sort of background checks. That’s good news. But it also means that nearly a quarter of companies don’t do any pre-employment screening, which is concerning. Screening employees means having a safer, more secure work environment. Here are 10 important things every organisation should know about the hiring process, and the need to conduct thorough pre-employment background screening.
1. Some job candidates will actually fabricate a new identity.
This is especially true if they have something to hide, such as a criminal background. Proper screening can verify names, addresses, phone numbers, national ID numbers and other identifying information to confirm that they are who they claim to be.
2. Credit and financial history should be reviewed.
Fraud statistics have shown financial distress to be a key red flag for fraudulent behaviour. Has the candidate claimed bankruptcy? Have they dissolved prior companies or are they faced with debtor filings? An individual’s financial history should be checked to the degree that is permissible by local laws.
3. Previous employment needs to be confirmed.
Background checks will verify past employers, locations of past employment, dates employed, salary levels, reasons for leaving, position titles, gaps in employment history and pertinent contact information.
4. Stretching employment dates is a major problem.
Speaking of previous employment, CRI Group™’s survey found that the top form of résumé fraud is stretching employment dates. This can cover gaps in employment, or make it seem they have more experience in certain positions than they actually do.
5. Some candidates present fake education credentials.
Verification is needed to confirm school grades, degrees and professional qualifications. Claiming a degree that was never earned is one of the most common fabrications. Certifications, assessments, awards – all of these can be fabricated or fraudulently claimed by a candidate in an effort to make themselves look more qualified for a position than they actually are.
6. International criminal records searches are critically important.
Criminal background checks should include any convictions for the applicant in the requested jurisdictions. Hiding a criminal background is one of the most serious omissions. Depending on their history, your business and employees could be at risk from a bad actor who intentionally hides their criminal past.
7. Checking (and verifying) references is important.
A job seeker might provide an employment reference that gives a shining recommendation – but the contact turns out to be their close friend. This type of deception can hide the true nature and work record of the candidate.
8. Formalise your background screening policy.
What is your company’s current, written policy for hiring new employees? How does it address background checks, due diligence, and other issues? Is the process followed in every case? Having the process detailed in writing will help make it a regular part of your business practice.
9. Make sure someone owns the background screening process.
Ultimately, who has the responsibility of vetting new hires? Is it ownership? Human resources? Individual managers? It might be a collaborative process. All of those who are involved in hiring should also be involved in the implementation of a due diligence solution that includes background checks.
10. Don’t skip post-employment background screening.
Proper due diligence doesn’t just apply to prospective new hires. It should also be used to periodically evaluate your current workforce. Examine the various roles and personnel at your organisation, and consider a policy that addresses risk areas with background checks. For example, CRI Group’s survey found that nearly half of business leaders see financial services, investments and banking positions as “high risk.”
It’s important to have a formal, written policy for background screening. It’s also important to know that comprehensive background checks are best performed by industry experts who understand where to find and confirm employee information. This ranges from criminal, education and employment history records checks to verification of credentials, training and certifications. CRI Group™’s professional background screening services engage international resources in geographic regions not serviced or accessible by typical “out-of-the-box” screening services.
EMPLOYEE BACKGROUND CHECKS
EmploySmart™ is a CRI™ employee background checks service. It is a robust new pre-employment background screening service certified for BS7858, to avoid negligent hiring liabilities. Ensure a safe work environment for all – EmploySmart™ can be tailored into specific screening packages to meet the requirements of each specific position within your company. We are a leading worldwide provider, specialised in local and international employee background checks, including pre-employment and post-employment background checks.
CRI™ Employee Background Checks are essentially an investigation into a person’s character – inside and outside their professional lives. Some checks you probably already carry out in-house, such as candidate’s qualifications (documents provided), work history (with a reference check), right to work in the country and even a quick social media presence scan. However, we provide a full in-depth background screening service for candidates and employees at all levels – from senior executives through to shop-floor employees:
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CRI™ is duly certified by British Standard Institute BSI for the scope of BS 7858:2019 Screening of individuals working in a secure environment, Code of practice (the only BS 7858 certified background screening services provider in the UAE and across the Middle East); and BS 102000:2018 Code of practice for the provision of investigative services.
Ensure a safe work environment for all in this difficult time – EmploySmart™ can be tailored into specific screening packages to meet the requirements of each specific position within your company.
ABOUT CRI GROUP™
Since 1990, Corporate Research and Investigations Limited (CRI Group™) has been safeguarding businesses from fraud, bribery and corruption. Globally, we are a leading Compliance and Risk Management company licensed and incorporated entity of the Dubai International Financial Center (DIFC) and Qatar Financial Center (QFC). CRI™ protects businesses by establishing the legal compliance, financial viability, and integrity levels of outside partners, suppliers and customers seeking to affiliate with your business. Based in London, United Kingdom, CRI™ is a global company with experts and resources located in key regional marketplaces across the Asia Pacific, South Asia, the Middle East, North Africa, Europe, North and South America. Our global team can support your organisation anywhere in the world.
In 2016, the company launched the Anti-Bribery Anti-Corruption (ABAC™) Center of Excellence – an independent certification body that helps organisations mitigate internal and external risks by providing a complete suite of Anti-Bribery, Compliance and Risk Management programs.
OUR MISSION AND VISION
- CRI™ mission is to safeguard the corporate world by detecting and exposing those elements that can cause irreparable harm to a business
- Stand up against the outside forces that, through corruption, collusion, coercion and fraud, can cause financial, organisational, reputational and legal harm to our global clients
- Stand out as the preeminent provider of specialised investigative services that enable our clients to exhibit the highest standards of business integrity, ethics and behaviour
The Importance of Background Checks
The Importance of Background Checks: A Case Study
The world is changing. Borders are opening up. Workforces are crossing international boundaries. Barriers to global competition are lifting and technology is simplifying communication and allowing virtually anyone to enter the global job market. The only constant that remains in today’s hiring equation is people. Resume fraud is a widespread problem for employers in every industry and at any size company. It’s persistent and sometimes even careful examination of a resume won’t immediately reveal red flags or problems. The only way to properly vet job candidates is to screen them with a thorough pre-employment background checking process.
The result of not comprehensive background screening checks was recently described on CNBC, 2018, titled: “HR Confidential: I hired him without performing a background check. Then he stole his colleagues’ identities”. Let’s have a look at the case study.
“I was a senior HR manager at a foreign banking company. An employee came to my office and informed me that someone had stolen his identity and applied for credit cards in his name. I took down a report but didn’t think anything of it because I oversaw payroll and other sensitive information. It wasn’t out of the ordinary for employees to notify me about changes to their banking information or if their bank account had been compromised. That way, I could make sure there were no issues with their deposits. But a week later, another employee came to me with the same problem and my red flag went up. By the third employee, I knew something was happening. I realised we had an internal problem because it’s too coincidental for three employees to have identity theft within a three-week span. My staff and I tried to figure out what was going on but we were getting nowhere.
The solution
After a few weeks, we hired an investigative company that specialises in fraud. They came to my office and requested the name, photo and address of everyone who has ever touched our employee files and I gave them a list of 15 to 20 people. One week later, they came back with the postmaster general and postal police officers who were armed with guns. They sat down, placed the list in front of me, pointed to a name and asked, “Who’s this person?” I responded, “Oh, he’s a temp in our file room.” They said, “Bring him in.” I brought him into my office and the guy’s in handcuffs in less than five minutes. I couldn’t believe it. I was in shock. The guy was a temp employee who we had hired through an outside agency to work in our file room. When you have 3,000 employees, their personal files quickly pile up so we hired him to clean up each person’s file, add information to them and put them away. However, he was going into these files, taking people’s social security numbers and stealing all of their information. The post office already had the guy under investigation for other credit card fraud that was linked to a particular address. Therefore, when they saw his name on our list, they were able to easily nail him. When he came into my office, he initially denied that he was the culprit. However, he eventually admitted that his friend talked him into stealing his colleagues’ information. He and his friend were stupid enough to fraudulently sign up for credit cards and got them sent to their home address. That address was the one that the postmaster spotted on our list. For the employees who had their identity stolen, this was such a nightmare. It took some of them more than a year to get this solved. I also felt somewhat responsible because I’m the one who hired the temp and this happened under my watch. I did the best I could in providing support.
As a company, we did feel obligated to offer help and paid the service fees to help them clean up their records. I felt terrible. This went on for months for them. Luckily, they didn’t sue us or anything but it was a mess.
The lesson
The first lesson here is this: Quickly determine when something is outside of your element and know when it’s time to get help. Doing an investigation of employee theft was outside of my staff’s expertise. Even though it cost us about $5,000 to hire the investigative company, it saved us time that would otherwise have been wasted. You need to know when you’ve reached your limit and when to outsource things.
The second lesson is to always perform background checks for temp employees (just like you would for a full-time employee), especially if the person is handling sensitive information.”
At CRI Group™, our EmploySmart™ pre-employment background screening process analyses a job candidate’s claims and credentials and digs beyond the surface to make sure the facts match up. Our experts conduct extensive checks that examine all of the following details of a potential employee:
- Employment History References
- Credit and Bankruptcies Checks
- Academic and Professional Qualifications
- Prior Work Experience and Business Success/Failure Searches
- Regulatory Registers, Compliance Databases and Regional Supplemental Searches
- Sanction List and Criminal Record Searches
- Identity and Good Conduct Certificate Validation
- Directorship Search
- Media and Social Network Search
Can you afford to let degrees and credentials go unchecked? Contact us today.
Source: CNBC, 2018, titled: “HR Confidential: I hired him without performing a background check. Then he stole his colleagues’ identities”, https://www.cnbc.com/2018/04/05/hr-confidential-i-hired-him-then-he-stole-his-colleagues-identities.html
6 ways forensic accountants fight financial threats
Forensic accountants are experts with a unique set of training and skills. “Forensic” means suitable for use in court, and forensic accounting is a speciality practice area of accounting that deals with engagements and investigations where disputes or litigation are anticipated.
For those reasons, the training and expertise demonstrated by these professionals make them very effective in investigating and combating fraud and other financial threats. That’s why CRI Group provides forensic accounting services to help clients safeguard their financial investments and utilise best practices when a case progresses to legal action – which is happening on a regular basis as more companies make rooting out fraud a top priority.
“Forensic accountants inhabit a cloak and dagger corner of the accounting world. Their job: respond at a moment’s notice when a client spots trouble – anything from procurement fraud to a top executive cooking the books to industrial espionage.”– Justin Pope, Associated Press
Here are some ways that forensic accountants lead the fight against fraud (Source: Forensic CPA Society, titled “What is a Forensic Accountant?”).
1. Forensic accountants are suspicious
They must be able to apply their accounting knowledge to legal issues. A forensic CPA will be asked to write expert reports, assist in depositions, testify as an expert witness, conduct fraud investigations and assist in civil and criminal investigations.
2. Forensic accountants are trained investigators
They are experts at determining whether criminal matters such as employee theft, securities fraud (including falsification of financial statements), identity theft, or insurance fraud have occurred. Investigation may also occur in civil matters.
3. Forensic accountants can testify in court
Forensic accountants often have to give expert evidence at the eventual trial. Forensic accountants not only utilise their accounting and auditing skills, but also use their investigative skills to determine what events actually took place in a financial setting. Knowledge of the courtroom sets the forensic accountant apart from a typical accountant.
4. Forensic accountants provide litigation support
Litigation represents the factual presentation of economic issues related to existing or pending litigation. In this capacity, the forensic accountant quantifies damages sustained by parties involved in legal disputes and can assist in resolving disputes before they reach the courtroom.
5. Forensic accountants can assist with business valuation
Forensic accountants often assist in professional negligence claims where they are assessing and commenting on the work of other professionals.
6. Forensic accountants can help recover assets
In the aftermath, forensic accountants may be involved in recovering proceeds of crime and in relation to confiscation proceedings concerning actual or assumed proceeds of crime or money laundering.
When financial pressure leads to fraud, you need a qualified forensic accountant – or better yet, a team of them – to unravel the numbers and the facts of the case. CRI Group’s highly qualified forensic accounting experts, which include our Certified Fraud Examiners (CFEs), can quickly find discrepancies in your finances and investigate the source of the problem.
The future of your business depends on safeguarding assets and investments from fraud. Contact CRI Group today and ask us how we can help your business by preventing and detecting fraud — thereby improving your bottom line.
Who is CRI Group?
Based in London, CRI Group works with companies across the Americas, Europe, Africa, Middle East and Asia-Pacific as a one-stop international Risk Management, Employee Background Screening, Business Intelligence, Due Diligence, Compliance Solutions and other professional Investigative Research solutions provider. We have the largest proprietary network of background-screening analysts and investigators across the Middle East and Asia. Our global presence ensures that no matter how international your operations are we have the network needed to provide you with all you need, wherever you happen to be. CRI Group also holds BS 102000:2013 and BS 7858:2012 Certifications, is an HRO certified provider and partner with Oracle.
In 2016, CRI Group launched Anti-Bribery Anti-Corruption (ABAC®) Center of Excellence – an independent certification body established for ISO 37001:2016 Anti-Bribery Management Systems, ISO 37301 Compliance Management Systems and ISO 31000:2018 Risk Management, providing training and certification. ABAC® operates through its global network of certified ethics and compliance professionals, qualified auditors and other certified professionals. As a result, CRI Group’s global team of certified fraud examiners work as a discreet white-labelled supplier to some of the world’s largest organisations. Contact ABAC® for more on ISO Certification and training.
Rent Checks Post-Brexit
Uncertainty around Brexit continues, and the possibility of a no-deal means it is still challenging to predict what will happen when the UK leaves the EU. The Government is yet to release official guidance on what letting agents and Landlords will need to do, should a no-deal Brexit be the outcome of the process. The lack of clarity from the Government has already caused problems. Many landlords are averse to letting their properties to non-UK nationals in case they are in breach of the Right to Rent rules, post-Brexit. The Government is under increased pressure to give clear guidance on post-Brexit Right to Work and Right to Rent checks.
What do we know so far?
Right to Rent is creating a hostile environment in the private rented sector with more landlords refusing to consider renting to non-British nationals, including EU citizens, due to concerns about Brexit. According to research from the Residential Landlords Association (RLA), 44% of private rented sector landlords are less likely to rent to those without a British passport.
The Right to Rent scheme – introduced in 2016 – has never been popular as it requires landlords to carry out immigration checks to make sure that they do not rent a property to someone who does not have the right to live in the UK. Furthermore, landlords face prosecution if they know or have ‘reasonable cause to believe’ that the property they are letting is occupied by someone who does not have the right to rent in the UK.
Potential changes post-Brexit
One change which may be implemented post-Brexit is the introduction of a digital checking service. A white paper in December last year* suggested this would enable prospective tenants to view and ‘verify’ their immigration status. Meaning landlords could confirm the applicant’s eligibility to rent far more quickly. Those renting to foreign nationals from the EU would no longer need to manually check the documents which are currently required under the right to rent legislation.
Summary
There’s no denying that both landlords and EU tenants have many unanswered questions when it comes to Brexit and right to rent legislation, mainly down to the fact that a deal has not yet been decided. The 31st October 2019 should hopefully bring a clearer picture and provide the answers both parties need.
Let us know if you would like to find out more. If you have any further questions or interest in implementing a digital checking service in advance, please do get in contact.
*”The UK’s future skills-based immigration system”, by HM Government
About CRI Group
Based in London, CRI Group works with companies across the Americas, Europe, Africa, Middle East and Asia-Pacific as a one-stop international Risk Management, Employee Background Screening, Business Intelligence, Due Diligence and other professional Investigative Research solutions provider. We have the largest proprietary network of background-screening analysts and investigators across the Middle East and Asia. Our global presence ensures that no matter how international your operations are we have the network needed to provide you with all you need, wherever you happen to be. CRI Group also holds BS 102000:2013 and BS 7858:2012 Certifications, is an HRO certified provider and partner with Oracle.
In 2016, CRI Group launched Anti-Bribery Anti-Corruption (ABAC®) Center of Excellence – an independent certification body established for ISO 37001:2016 Anti-Bribery Management Systems, ISO 37301 Compliance Management Systems and ISO 31000:2018 Risk Management, providing training and certification. ABAC® operates through its global network of certified ethics and compliance professionals, qualified auditors and other certified professionals. As a result, CRI Group’s global team of certified fraud examiners work as a discreet white-labelled supplier to some of the world’s largest organisations. Contact ABAC® for more on ISO Certification and training.
Risk management and its continuous improvement
Risk management requires continuous improvement. Without a company culture strongly aligned with principles of continuous improvement, organisations will struggle to implement, let alone maintain, successful risk management programs. This can be challenging in practice, as cultivating a risk management attitude within a company involves aligning risk initiatives with existing company values, policies and, to put it simply, convincing everyone involved that risk management is worthwhile. However, improving risk culture is possible, and, like many things, it becomes a lot easier when you have a process for it.
Such a process can be separated into three stages:
- Cultural awareness
- Cultural change
- Cultural refinement
Phase one: Building and strengthening cultural awareness
The first stage is building cultural awareness; this will take the form of communications, training, and general education initiatives within the organisation. Here is where companies set risk management expectations and objectives, define roles and responsibilities, and communicate all of these things with their employees. You shouldn’t expect your employees to conform to your ideas about risk management without first taking the time to educate and inform them, whether through formal training or access to knowledge base material or similar.
Successfully building and strengthening cultural awareness about continuous improvement includes:
- Establishing a common risk management vocabulary
- Making sure communications are consistent with said vocabulary and that everyone in the organisation has clear access to all relevant documents
- Being clear about risk management responsibilities and accountabilities.
- Launching and maintaining training programs, providing training support and guidance where needed and as required by different roles and responsibilities within the organisation
- Making sure onboarding processes adequately cover risk management.
- Making sure recruitment processes adequately cover risk management.
Phase two: Changing the way the organisation operates
Once a firm foundation of cultural awareness regarding continuous improvement has been established, it’s time to start thinking about how to gradually change how the organisation operates to reflect these values. This phase begins by recognising and rewarding employees for paying attention to risk and responding to risk in a way that challenges the previously established (pre-continuous improvement) status quo. These motivational systems, rewarding and penalising behaviour according to the established ideals of continuous improvement outlined in the early planning stages, will result in the gradual but certain shift towards a proliferation of continuous improvement-conscious company culture. Another important element is recognising the talent that conforms with the desired vision of continuous improvement and capitalising on this alignment by placing them accordingly in relevant, optimised positions of responsibility or seniority. It’s getting people in the right place to drive the right results.
Some important considerations for this phase:
- Utilising challenge as a motivator for driving cultural change
- Gamifying and quantifying risk performance metrics and rewarding/penalising behaviour accordingly.
- Considering risk management and continuous improvement culture in talent management approaches.
Phase three: Optimising and refining the cultural ecosystem
The third and final stage of cultural adoption of continuous improvement occurs once the company culture has matured to the point of widespread adoption and desired values are already well-entrenched. At this point, the focus shifts to monitoring performance versus expectations and attempting to tweak and refine the system to further improve cultural adoption. The expectations can and will be influenced by a wide range of stakeholders, not just top management; employees, a board of directors, analysts, customers, investors – they all have a say in the definition of cultural expectations because these expectations should directly reflect the whole entity that is the organisation, made up of all its constituent stakeholder parts.
Steps taken during this phase might include:
- Iterating feedback and observations from risk management into training, education, resources, and communications.
- Making sure stakeholders are held responsible for their actions
- Make sure any risk performance metrics or quantifiers are adjusted to reflect risk strategy, goals, and objectives changes.
- The capacity to redeploy and reassign individuals within an organisation according to desired risk culture goals
- Continually reflecting on and refining risk culture by continually changing business goals, objectives, and strategies.
At CRI® Group, we are committed to spreading the knowledge about the risk, compliance management and negative impact of fraud, bribery, and corruption to global businesses and promote transparent business relations across the world. As part of this effort, we want to present you our in-depth risk management and compliance insights – articles, whitepapers, eBooks, and other publications to help organisations overcome fraud, compliance, bribery, and corruption management challenges and tackle risks more effectively.
Don’t miss the opportunity to step up towards transparency and better protection for your business and your career – CRI® Group’s risk management and compliance insights give you a chance to explore these topics in-depth. If you are interested in our solutions, please click below to a free quote or contact us today.
Background Checks: An Essential Process
There are inherent risks in the hiring process, including deception by individuals seeking to gain an advantage over other candidates. Thorough pre- and post-employment background checks are critical in mitigating these risk factors, helping any organisation stay better protected from fraudulent candidates or unqualified employees.
The advantages of using an expert third-party service to conduct background checks are many. Comprehensive background checks are best performed by industry experts who understand where to find and confirm employee information, from criminal, education and employment history records checks to verification of credentials, training, certifications and other important info claimed by the employee or candidate. An international firm can access resources in geographic regions not serviced or accessible by typical “out-of-the-box” screening services.
Taking this approach puts protection in the hands of agents who are specially trained to use every resource available to provide timely and thorough pre- and post-employment background checks, adding a level of due diligence that allows you to focus on your core business needs. This is why any pre-employment background checks should dig deep enough (within all local laws and regulations) to assess every detail of a job candidate’s claims and credentials, to confirm that the claims match with the facts. An expert team should examine all of the following details of a potential employee:
- Identity: Some job candidates will actually fabricate a new identity, especially if they have something to hide. Proper screening can verify name, addresses, phone numbers, national ID numbers and other identifying information to confirm that they are who they claim to be.
- Credit checks and bankruptcy checks. As permitted by local laws, financial and credit history should be reviewed, as fraud statistics have shown financial distress to be a key red flag for fraudulent behaviour. Has the candidate claimed bankruptcy? Have they dissolved prior companies or are they faced with debtor filings?
- Previous employment verification. Background checks will verify past employers, locations of past employment, dates employed, salary levels, reasons for leaving, position titles, gaps in employment history and pertinent contact information.
- Education and credentials verification. Verification is needed to confirm school grades, degrees and professional qualifications.
- Criminal history. International criminal records searches are critically important, and should include any convictions for the applicant in the requested jurisdictions.
- … and more.
What gets uncovered serve both as cautionary tales and success stories. One client in the medical industry was hiring for a critical management-level position. After finding what appeared to be an exemplary candidate, they engaged thorough pre-employment
The candidate claimed to be a holder of a university degree, which, upon verification, turned out to be ‘fake and forged.’ The applicant also provided a reference letter, which turned out to be fake as well. In short, there was nothing legitimate about the candidate’s educational background. This person would have been a risk on all levels, including patient safety. The client dodged a very real bullet by applying proper background checks, and not hiring someone who was unqualified and untrustworthy.
Don’t take unnecessary risks with your business, assets, investments and reputation. Whenever you are hiring a new employee, conduct a thorough pre-employment background check, best implemented and administered by a third party. After all, a team that specialises in background checks will have a full bank of resources and experienced personal to do the job properly. Hiring new employees should be an occasion marked by excitement, not risk and uncertainty.
Let’s Talk!
If you have any further questions or interest in implementing compliance solutions, please contact us.
CRI Group has safeguarded businesses from any risks, providing investigations (i.e. insurance fraud), employee background screening, investigative due diligence, business intelligence, third-party risk management, forensic accounting, compliance and other professional investigative research services. In 2016, CRI Group launched Anti-Bribery Anti-Corruption (ABAC®) Center of Excellence – an independent certification body established for ISO 37001:2016 Anti-Bribery Management Systems, ISO 37301 Compliance Management Systems and ISO 31000:2018 Risk Management, providing training and certification. ABAC® operates through its global network of certified ethics and compliance professionals, qualified auditors and other certified professionals. Contact ABAC® for more on ISO Certification and training.
Hiring Process: the 10 Top Risks
10 Top Risks Faced in the Hiring Process
Hiring new employees is an essential part of operating, and growing, a successful business. It is also a process that presents an inherent risk to any organisation. Company insiders often commit fraud and other criminal acts; the very people trusted to work for the business’s best interests. While most employees might be honest and trustworthy, it only takes one to cause major unforeseen problems that can be hard to predict and even more difficult to undo.
Companies that don’t perform pre-employment background checks, or conduct insufficient background checks, are at a particularly high level of risk. According to popular employment site CareerBuilder.com, “Fifty-eight per cent of hiring managers said they’d caught a lie on a resume; one-third (33 per cent) of these employers have seen an increase in resume embellishments post-recession.” Even more staggering, 50% of workers know someone else has lied on their resume (BestLife, 2018). This shows an uptick in recent years and should alarm any business owner or hiring manager/human resources professional as a wake-up call that there is a serious problem.
So what are the most common areas of resume fraud? The following is a rundown of the top 10 ways candidates might show deception in the hiring process:
1. Stretching Dates of Employment:
Someone who can only stay at each job for a few months at a time is likely to be a concern for a prospective employer. For that reason, they might fudge their employment dates to make it look like they have longer ranges of employment in certain positions.
2. Inflating Past Accomplishments and Skills:
The candidate might claim major successes; for example: “implemented new CRM process company-wide” – when in reality, they only played a small role in this achievement.
3. Enhancing Job Titles and Responsibilities:
Perhaps they were managers, but refer to themselves as a director. Or it might be something subtle, such as calling themselves “senior sales managers” when in fact, they were “assistant sales managers.”
4. Education Exaggeration and Fabricating Degrees:
Claiming a degree that was never earned is one of the most common fabrications. Several executives at large corporations have been exposed to this type of deception.
5. Unexplained Gaps and Periods of “Self-employment:”
A candidate who was simply unemployed (or worse … such as incarcerated, for example) might claim to have been running their own business to explain their employment gap(s) when in fact they were just not working.
6. Omitting Past Employment:
A prospective employee might leave out previous jobs if they were terminated for cause or don’t want that particular employer to be contacted for any other reason.
7. Faking Credentials:
Certifications, assessments, awards – all of these can be fabricated or fraudulently claimed by candidates to make themselves look more qualified for a position than they are.
8. Fabricating Reasons for Leaving the Previous Job:
Being terminated from a job, especially for a serious transgression, is not something most job candidates want to tell a prospective employer. For that reason, they might make up a different scenario, such as “I resigned to pursue better opportunities.”
9. Providing Fraudulent References:
A candidate provides an employment reference who gives a shining recommendation. However, the contact turns out to be a friend of the candidate. This type of deception can hide the true nature and work record of the candidate.
10. Hiding a Criminal Background:
This is one of the most serious omissions. Depending on their history, your business and employees could be at risk from a bad actor who intentionally hides their criminal past.
Several consequences can occur from the above deceptions. Fraud and criminality are possible. Having employees in place who are underqualified to do the job they’ve been hired for is another. This can lead to safety risks and obvious harm to business on every level. That’s why smart business leaders take a proactive approach toward minimising risk with thorough background checks and proper due diligence in the hiring process.
Let’s Talk!
If you have any further questions or interest in implementing compliance solutions, please contact us.
CRI Group™ has safeguarded businesses from any risks, providing investigations (i.e. insurance fraud), employee background screening, investigative due diligence, business intelligence, third-party risk management, forensic accounting, compliance and other professional investigative research services. In 2016, CRI Group™ launched the Anti-Bribery Anti-Corruption (ABAC™) Center of Excellence – an independent certification body established for ISO 37001:2016 Anti-Bribery Management Systems, ISO 37301 Compliance Management Systems and ISO 31000:2018 Risk Management, providing training and certification. ABAC™ operates through its global network of certified ethics and compliance professionals, qualified auditors and other certified professionals. Contact ABAC™ for more on ISO Certification and training.
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