Senior management, individuals employed in positions of trust and external trusted advisors, are well placed to influence corporate expenditure, proposal and bid commitments, as well as the day-to-day success or failure of deals and transactions.
Individuals who encounter change in their personal circumstances, leading to a conflict of interest or a lack of suitability for a particular role, might conceal this information. This lack of transparency could place an employer or business counterparty at a disadvantage and be considered prejudicial to business (e.g. deal/transaction) integrity.
Source of risk
Examples of risk to consider, include:
Unexplained gap, anomaly or inconsistency in career history (e.g. per application form, CV, LinkedIn, etc.)
Identity fraud, where an innocent third party's name and credentials are misused by a dishonest individual to gain/retain employment, or participation in a deal or transaction
Failure to disclose (unspent) convictions, bankruptcy petitions/orders, or civil court judgments (e.g. fines, penalties, etc.)
Mitigating identifiable risk
A red-flag or anomaly identified in an individual's profile:
Is not automatically indicative of fraud or other impropriety, but may indicate a need to consider taking additional measures
Should be risk-assessed and responded to accordingly (e.g. by clarifying details of any gap/anomaly identified with the individual, where practicable, to assess attributable risk)
Should be considered in the context in which an individual is of interest (e.g. relevant to the individual's role or responsibility, his/her associates, the operating environment, commercial context, etc.)
Enables consideration of potential for civil or criminal liability, or of applicable legal and regulatory requirements, when managing reputation risk
Promotes relationship engagement or continuance (e.g. where risk identified can be appropriately mitigated) or relationship exit (e.g. where risk identified exceeds risk appetite)
How we can help you
FCRM researches individuals for indicators of anomaly, red-flag or other impropriety (e.g. fraud, dishonesty, regulatory censure or law enforcement interest, etc.), to provide clients with an informed risk profile.
In appropriate circumstances we provide (or assist clients to prepare) structured questionnaires for completion by individuals (e.g. as part of pre-employment screening), to aid develop and assess their risk profile.
Where practicable, on international engagements we utilise a network of reliable contacts and intelligence sources, to leverage their knowledge of local culture, launguage, practices and information repositories.