People risk needs to be managed just as much as other types of risk within a business. Every company has to manage risks within their business, and it is something that is taken very seriously by most executives. If risk is not managed, it can destroy the value of a company, ruin reputations or even bring a company down.
When it comes to people risk, every decision made regarding employment is just that…a risk. When you have to hire from outside your company, there is risk involved. You have a resume in front of you, and make an initial decision based on what an applicant has presented. Even after an interview, the risk is still there moving forward in the hiring process.
A background check is one tool that can help mitigate people risk. Whether it is just a criminal search, or something that includes employment and education verifications, or even asking a candidate to take a drug test, the people risk that can be lessened from these types of employment screenings is far greater than if you did not do any sort of advanced screening.
Unfortunately, what many businesses don’t realize is that not monitoring people risk can cause just as much damage to an organization as some other business influences. Internally, making the wrong decision on a candidate can prove to not only be costly, but can also damage the reputation of a company. If someone is hired that lied on a resume, or does not bring the business acumen that was expected or anticipated, it can hurt relationships with clients.
Taking all possible steps to manage the people risk within a company is something that any smart executive will do. Every company has risk, and most risks can be overcome by smart risk management decisions, including people risk.