Strategic Management Partners
Risk Management and Business Continuity
PERSONNEL BACKGROUND VETTING
PROTECTING EMPLOYER BRAND VALUE
REDUCING FRAUD AND REPUTATION RISK
by Clive Bonny [email protected]
www.consult-smp.com
Summary: Personnel Background Vetting
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Rising risks of fraud for private and public employers
Protective handling personal security data
Impacts and benefits for clients and service suppliers
Aligning vetting benefits to quality and brand value
Background personnel vetting actions and costs
www.consult-smp.com
Rising Risks of Fraud for Employers
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£1 Billion pa business losses (assn chief police officers)
7% all organisation revenues (assn cert fraud examiners)
50% CV’s contain misleading information (risk advisory gp)
70% employees would commit fraud if not traceable (cifas)
74% increase business fraud in last year (stoy hayward)
85% UK businesses victims in last 3 years (kpmg)
• “Fraud is the second greatest harm to society after drugs”
(Government fraud review)
www.consult-smp.com
Rising Risks for public sector employers
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£90 M pa false claims for Single Person Discount tax
£200 million pa housing overpayments by councils
50,000 reduction in social housing worth £2 Billion
£1.9 Billion pa bogus insurance claims
• “Over 11,000 illegal immigrants have been issued
with Security Industry Association licenses to vet
security guards” Times
www.consult-smp.com
Rising risks: fraud motivations and hotspots
• Personal financial pressure and workload stress
• Perceived mistreatment and de-motivation
• Poor monitoring of security policy and procedures
• Misappropriated assets, inventory, intellectual property
• Collusive tenders, bribes, accounts statements
• Mis-stated data of company and personal details
www.consult-smp.com
Protective handling personal security data
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285 M records compromised in 90 sample cases
99% servers compromised but 87% avoidable
81% PCI users non compliant with online standards
74% business have external data beaches
74% IT workers can circumvent security
69% breaches discovered by a third party
36% identified data losses to competitors
22% losses identified via privileged misuse
(Verizon)
www.consult-smp.com
Protective handling sensitive personal data
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Safeguarding Vulnerable Groups Act 2006
ISA Vetting and Barring Scheme covers 11M adults
Baseline Personnel Security Standard for contractors
Verify original docs face to face, avoid post / email
Trained verifiers of passports, permits, cv, crb, nino
Signed dated copies kept securely off personnel files
Security policies / practices independently checked
CRB/BBS offences are disclosed only to recruiters
CRB/DBS offenders are told who knows and why
www.consult-smp.com
Impacts and benefits for clients / suppliers
• BPSS and DBS verifies public and private suppliers
• Health, Education, Government, Housing and Contractors
• Replaces Basic Checks for 50% of UK employers
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“Assures trustworthiness, integrity, probable reliability and
forms the basis of National Security Vetting”
• Evidence-based proof for confidential and sensitive work
• Supports Civil Contingencies Act for Business Continuity
• Credentials integrity for employers and employees
www.consult-smp.com
Aligning benefits to quality and brand value
BPSS verification components:
Identity and residency records (5 years)
Employment qualifications and references (3 years)
Nationality, Immigration Status, Work Permit, NINO
Unspent Criminal Records (ref Rehabilitation Act)
Independent validation of CV and biodata of key workers
Differentiates suppliers to win new competitive bids
Enhances and protects relationships with existing clients
Reduces costs, risks of fraud and liabilities to reputations
www.consult-smp.com
Personal security branding widens access
• Home-Working
• Retail / Public Work
• Social Charities
• Contractor/Consultant
• Utilities and Facilities
• Cashier/Constructor
• Education and Welfare • Volunteer/Counsellor
• Health and Care
• Emergency Services
www.consult-smp.com
Recruitment risks to employer brand value
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Past employers cannot write candid references
Employees buy qualifications and education records
Recruitment agencies report 50% CV’s “inaccurate”
Agencies remain unregulated and need placements
Candidates need jobs and “expand their abilities”
Employers lack time and processes to verify details
• The “system” carries high embedded risk
www.consult-smp.com
Background personnel vetting activities
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QA: scoping, contracting, permissions, submissions
ID: original passport, driver licence, CPD certificates
RESIDENCY: 5 years plus gap assessments
EMPLOYMENT: 3 years roles, references, qualifications
• WORKABILITY: immigration status and permits
• CRB: declarations unspent including driving offences
• VERIFICATION: standards met or unmet, CRB certified
• RECORDS: kept min 6 months and off personnel file
www.consult-smp.com
Personnel verifiers should also be vetted
• TRAINED by an approved agent or BPSS trained vetter
• DBS VETTED to enhanced standard by a regulated body
• APPROVED systems conform to EO, DPA, NSG standards
• AUDITED onsite by a government security officer
• REGISTERED by Information Commissioners Office
• CREDIT CHECKED by competent credit agency
• REFERENCES from an established organisation user
• QUALIFIED by relevant professional body CPD record
• ACCESS to HMRC and NINO records
• Buyers and Users should SEE evidence of the above
www.consult-smp.com
Background vetting activities and costs
• Several hundred employers have already been fined
£5000 by the UK Border Authority for failing to identify
a false work permit, visa or passport
• Personal debt and competition for work is spiralling
• Few recruitment agents and employers check biodata
• Vetting costs range from £50 to £500
• Vetting activities should be tailored to client needs
• You get what you pay for
www.consult-smp.com
FINAL CONSIDERATIONS
• EMPLOYERS
• Average direct recruitment
fee cost of one hire is £8K
• Bad hires cost X10 more in
operational losses
• Rigorous recruitment
attracts good candidates
• Good people stay twice as
long and attract others
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BPSS
• IINDIVIDUALS want
• More work with high value
employers
• Independent verified proof
of their integrity and security
• Trust to be given new
assignments
• A way to differentiate their
offer to employers
Thank you for your interest
For more information on Talent Management,
Risk Assessment and Business Continuity Planning
tele Clive Bonny 01273 308865
[email protected]
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Strategic Management Partners
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