What do you need to know if you’ve screened your business partners, employees, or job applicants and found a match? How do you evaluate a match’s risk?


I’ve already screened my business partners. Why do I also need to screen employees and job applicants?

Business partners are vital to your success, but they aren’t the only element. Employees at any level can have complicated backgrounds that expose your business to risk. Screening reveals liabilities like sanctions, reputation risks, and politically exposed persons (PEPs). You can learn about your situation by screening all employees and job applicants. Think of screening as part of the due diligence process that helps you meet regulations, reduce risk, and protect your reputation.

How does screening keep my company compliant?

Many countries use regulations to prevent financial crimes like money laundering, fraud, and financing terrorist or other criminal organizations. These requirements often include screening employees and job applicants for sanctions, PEPs, and other serious risk factors. Insurance providers, regulatory bodies, and other industrial organizations may also have similar requirements. Screening your personnel is an important step in staying compliant.

Does screening reduce my company’s risk?

Yes, screening employees and job applicants is an efficient way to reduce your risk. For example, a PEP employee could damage your company’s reputation if they’re involved in political wrongdoing. When you check your team for PEPs, sanctions, and reputation, you can proactively address the risk associated with these individuals.

How does screening protect my company’s reputation?

Your team is a reflection of your company. Employees with inappropriate backgrounds, political exposure, or sanctions can harm your company’s integrity, reputation, and standing. Screening your employees and job applicants lets you manage your company’s trustworthy reputation.

I screened my business partners, employees, and job applicants and found a match. What are my next steps?

Screening helps you identify partners, employees, and applicants with reputational risks, sanctions, embargoes, and/or politically exposed persons (PEPs). Finding a match can be complicated, especially if you already have a working relationship with the individual. There’s no one-size-fits-all recommendation for these situations. You should evaluate the risk, perform more due diligence, consider risk management, and possibly end the working relationship.

How do I evaluate a match’s risk?

Think about the severity of possible outcomes, the impact on your company, and what reputational damage could be involved. Your individual might bring high risk factors to the table, or their risk factors may be relatively low. You should also consider the benefits the individual brings to your company. You may decide to continue your business relationship or hire the applicant, despite their risks.

What further due diligence should we perform when we have a match?

More due diligence can help you understand the risks and decide what to do next. Consider performing more research or consulting your legal counsel when an individual shows significant risk factors.

How do we manage risk?

Your company may go ahead with relationships that involve manageable risk levels. Enhanced employee monitoring, further due diligence, internal controls, and other measures can help you build a profitable working relationship with risky individuals.

When should we terminate our relationship?

Unfortunately, some risks can’t be managed. When an individual shows significant, uncontrollable risks, it may be in your company’s best interest to end the relationship. You may need to consider terminating the employee or not hiring the applicant in these situations.

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