June 2, 2022
While the concept of risk has a long history, risk management remains a relatively recent concept for some businesses, particularly when it comes to people-risk.
To better understand people-risk management, let’s take a look at the basic principles of risk management, which include identification, assessment, control, and review. For organizations, this relies on extrapolating people data to identify potential internal and external threats to the operations, solvency, reputation, compliance, and performance of a company.
This means turning to background screeners or consumer reporting agencies to identify and alert the organization when new employee criminal activity pops up. Fortunately, this is easily done with continuous monitoring solutions for background screening.
The information provided is for educational purposes only and does not constitute legal advice. We advise you to consult your own counsel if you have legal questions related to your specific practices and compliance with applicable laws.
Recent advances in continuous risk management technology have been made to enable organizations to address people-risk in real-time. This allows background screeners to add value by equipping organizations with the necessary tools to continuously monitor criminal data, leading to more proactive risk management.
According to the European Journal of Operational Research, fruitful risk management requires comprehensive people data.
When it comes to risk auditing, risk probability relies on a broad perspective. Some organizations only use background checks as a preventative measure for risk management before hiring. This means they miss the opportunity to continually screen for potential risks that surface post-onboarding.
Overlooked organizational threats can lead to litigation risk, personal safety risk, and financial risk that damage a company’s reputation, brand value, and potentially even revenue.
The benefit of deploying continuous monitoring into risk management frameworks is that it goes a long way to instilling a corporate culture of trust and safety, where risk is minimized not merely at a single point in time, but consistently.
Risk mitigation controls, such as continuous monitoring, can help risk management teams develop trust and safety for employees and customers. This ultimately protects the company’s reputation, assets, and solvency.
To understand this idea, let’s delve into the principles of continuous risk management.
Continuous risk management is designed to help businesses identify and control for previously unforeseen risk in a timely and effective manner.
Not all risks can be planned for or predicted, but organizations can be one step ahead by using criminal monitoring to identify and respond to new risks, as they arise.
Risk assessment should not be a one time occurrence. Ongoing risk management allows leadership to continually review internal criminal activity and quickly respond in a way that aligns with corporate risk appetite.
Organizations that choose not to create a regular cadence for criminal data monitoring may face devastating financial, repetitional, and operational drawbacks.
Continuous risk management through criminal data monitoring is a way to promote a broader trust and safety management strategy. By giving leadership notifications on their workforce’s criminal activity, the administrative burdens that may arise after late discovery of criminal conduct can be alleviated.
The advantage of a continuous approach is that new criminal data can be assessed immediately. As a result, organizations know when a person’s criminal history has changed and can take action quickly to minimize risk to client and employee safety.
So how can businesses build trust and safety through continuous risk management?
By providing continuous criminal record monitoring, you can empower organizations with criminal insights. This enables leaders to receive alerts on newly identified criminal risks, for proactive risk management.
Proactive risk management is one way for a company to improve their business and employment practices and set themselves apart. In fact, organizations can benefit from developing a risk-assessment business strategy, while, at the same time, mitigating undesirable outcomes.
Studies suggest that incorporating continuous risk management into a business’s corporate culture can help foster a company’s long term goals.
Also, it can improve the overall quality of a service or employee roster. When teams recognize the need for continuous assessment, they are more aware of potential hazards.
Reach out to us to learn more about continuous monitoring solutions and how they can help you add value to your client’s risk management strategies.