Copyright © 2015 TRAK-1 Technology, Inc. All Rights Reserved.
The Basic Truths About Background Screening, Part 19
Copyright © 2015 TRAK-1 Technology, Inc. All Rights Reserved.
The Basic Truths About Background Screening, Part 19
Background Screening:A Critical Tool For Deucing Risk and Improving Performance
Copyright © 2015 TRAK-1 Technology, Inc. All Rights Reserved.
The Basic Truths About Background Screening, Part 19
Your Host: Rick ColtmanDirector of Strategic Marketing and Alliances,
TRAK-1 Technology, Inc.
• Please Post Any Questions or Comments You Have in the Comments Section.
• Want Further Information or Have Additional Questions? Contact Trak-1 at [email protected]
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Your Presenter: Nancy Roberts, Esq.
Owner/COO
Copyright © 2015 TRAK-1 Technology, Inc. All Rights Reserved.
The Basic Truths About Background Screening, Part 19
What Risks Does Your Organization Have To Manage?
ONE PRIMARY RISK IS FRAUD
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The Basic Truths About Background Screening, Part 19
What Does a Fraudster Look Like?
Employee
Manager
CEO/Executive
Fraud By Position Loss By Position
42%
36%
16%
$75,000
$130,000
$500,000
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The Basic Truths About Background Screening, Part 19
What Does a Fraudster Look Like?
FEMALE
MALE
67%
33%
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The Basic Truths About Background Screening, Part 19
Executive/Management12%
Customer Service8%
Purchasing7%
Finance5%
All Other De-partments
23%
Operations17%
Operations15%
Sales13%
Fraud By Department
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The Basic Truths About Background Screening, Part 19
What Is The Cost Of Fraud?
Revenues The Typical Organization Loses To
Fraud Each Year
The Median Loss Caused By A Single
Case of Fraud 22% of
Occupational Fraud Causes
Losses of
5%
$145,000
$1,000,000
=
=
>
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The Basic Truths About Background Screening, Part 19
What Is The Cost Of Fraud?
Organizations That Have Less Than 100 People Experience
Loss Due To The Fraud Of One Perpetrator
28% HIGHER
$80,000=
Median Losses Due To Fraud
Loss Due To The Fraud Of Two Or More
Perpetrators
$300,000
=
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The Basic Truths About Background Screening, Part 19
Results In
EFFECTIVE RISK MANAGEMENT
Intermediate Outcomes Ultimate Outcomes
• Compliance• Business Process Continuity• Working Environment• Resource Allocation• Internal Reporting• External Reporting• Reputation And Brand Image• Earnings Volatility
• Reduce Short Term And Long-term Costs
• Increase Revenue• Improve Program
Effectiveness• Achieve Greater
Organizational Success• Improve Overall
Shareholder Value
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The Basic Truths About Background Screening, Part 19
HOW CAN BACKGROUND SCREENING HELP MANAGE RISK?
PEOPLE
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The Basic Truths About Background Screening, Part 19
People Risks• Criminal Conduct• Unsafe Or Negligent Behaviors• Illegal Or Non-compliant Behavior• Unsafe Conduct• Poor Productivity• Bad Attitudes• Inability Or Refusal To Follow Instructions• Violent Behaviors• Offensive Attitudes Or Behaviors • Conduct That Can Result In An Unsafe
Environment
What Are The Key Behavioral Risks You Want To Minimize Or
Avoid At Your Organization?
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The Basic Truths About Background Screening, Part 19
People Risks
Background Screening Has Become A Critical Tool For Evaluating Or Predicting The Future
Behavior And Performance Of
Employees
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The Basic Truths About Background Screening, Part 19
Cost Of Wrong Hire
Negligent Hiring Case
Embezzlement
Sexual Offenses
Fraud Theft
Wrong Person Chosen / Wrong Decision Made
Workers Compensation Claims
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The Basic Truths About Background Screening, Part 19
Cost of Choosing Wrong Tenant
Lost Rents
Scare-Off Good Tenants
Non-Payment
Reputational DamageDrugs
Violence
Sexual Assaults
Property Damage
Theft
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The Basic Truths About Background Screening, Part 19
Cost of Choosing the Wrong Volunteer
Unforeseeable Damages
Reputational Damage
Inappropriate Behaviors
ViolenceSexual Assaults
Wrong Message
Theft
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The Basic Truths About Background Screening, Part 19
ROI Of Background Screening
• Lower Turnover And Reduced Absenteeism
• Less Property Damage And Loss Due To Theft, Lower Accounts Receivable
• Fewer Incidents And Claims To Manage
• Decreased Exposure And Liability
Direct Cost Savings Indirect Cost Savings• Improved Morale• Higher Quality Environment• Higher Quality Candidates
Engaging With The Organization
• Overall Improvement To Revenues Due To The Improvements To Culture And Performance Of The Organization
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The Basic Truths About Background Screening, Part 19
ROI Of Background ScreeningThe Small Business Administration Conducted A Study That Showed:
$5to $16 ROI
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The Basic Truths About Background Screening, Part 19
Background Screening & Culture
Your Hire Must Fit Your Organization’s
Culture
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The Basic Truths About Background Screening, Part 19
Next Step You Can Take
Tailored and Comprehensiv
e Screening Packages Tailored
REAL RISK REDUCTION
Comprehensive Screening
Program (Policy, practice,
compliance, forms,
accredited vendor)
+
=
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The Basic Truths About Background Screening, Part 19
Reducing Risk & Improving Profits
The Greater The Savings And The Back-end Profitability
for Your Organization
The More Checking You Do Up Front
=
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The Basic Truths About Background Screening, Part 19
Next Step You Can Take
But It Is Critical That Continuous Monitoring Is
Implemented
Background Screening Today
Snapshot of the past
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The Basic Truths About Background Screening, Part 19
Reducing Risk & Improving ProfitsComprehensive
Screening Programs • Culture Of Accountability• Truth And Transparency • Improved Profitability• Lowering Risk• Reducing Costs• Improving Overall
Productivity
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The Basic Truths About Background Screening, Part 19
Take Away Points– The payoffs for effective risk management and controls include both intermediate and
ultimate results. – However, every organization shares in common one risk – the risk of introducing PEOPLE into
their organizations. – A quality professional background screening gives you a look at someone’s past behaviors
and patterns as one critical tool for evaluating or predicting their future behavior and performance.
– The risk of failing to take the appropriate precautions in hiring can certainly be great. – the Small Business Administration showed for every dollar invested in a background
screening program, the organization will see a return on their investment in the form of cost savings equal to $5-$16.
– the way you define your ideal candidate and what you say about your background screening program will help set the culture you want to create for your organization.
– Thus, comprehensive screening programs put into place both at on-boarding and for ongoing monitoring can truly create a culture of accountability, truth and transparency as well as put your organization on a path for improved profitability
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The Basic Truths About Background Screening, Part 19
Coming Up Next…
Continuous MonitoringSAVE THE DATE: May 7, 2015
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1.800.600.8999 www.trak-1.com
Contact one of Trak-1’s FCRA-certified screening professionals to begin
Ruling In The Right People!