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Managing the 'human risk' in a company

It is estimated that the loss caused by white-collar crime to the South African economy is in excess of R80 billion per annum.

30% of businesses fail as a result of commercial crime and nine out of 10 businesses in South Africa are likely to fall victim to white-collar crime (2006 speech by South African deputy minister for Justice, Adv Johnny de Lange).

It is of critical importance that companies do not only do proper screening and profiling on a pre-employment level, but they must manage the human risk within their companies on an ongoing basis. A person may come into your company with high work ethics but may become 'contaminated' in the work place as access and opportunity may be there for the first time. Personal circumstances may change that may cause a person to become a risk eg, financial situation.

Therefore, post-employment profiling is critical as well as integrity and fraud prevention training.

Three pillars in behavioural risk management and fraud-prevention

Risk (integrity) assessments and profiling

Omega IPS specialises in identifying any detrimental or potentially detrimental behaviour within organisations by assessing individual behaviour and performance within the company/organisation, identifying the strengths, weaknesses and development areas of employees and providing a training or management solution regarding the identified areas of development or risk factors.

Integrity assessment is aimed at identifying any potentially detrimental behaviour, ie, any behaviour that is not in line with a company's codes of conduct or ethics. Behaviour may be company-specific, but assessments are always evaluated in terms of global norms, eg, from truancy and sleeping on duty to more serious transgressions, such as fraud and theft.

The profiling process determines the compatibility of a prospective or existing employee with the requirements of a specific position, as well as with a specific company in a specific country. This process further gives an indication of ethical compatibility. All screening processes are designed to predict a candidate's future behaviour.

The importance of pre-employment integrity assessments and profiling:

* Negative behavioural patterns potentially detrimental to a company can be determined.

* Past fraudulent behaviour can be made known to a company prior to appointment.

* Adopting a pro-active approach in which potential candidates are informed that they will be assessed as a pre-requisite prior to interviewing for a position as part of pre-employment screening, will keep unwanted people from applying in the first place.

* Finding the right person for a position regarding job requirements is made a lot easier.

* Potential for further development and training is indicated as part of the pre-employment profiling.

* Company-specific requirements can be determined as part of pre-employment assessments, for example presentability, verbal ability, people skills, assertiveness etc.

* The mere knowledge that re-assessments are taking place on an ongoing basis is a pro-active measure as fear of being caught will decrease involvement in negative behaviour. On the other hand, positive behaviour may be rewarded, thereby enhancing ethics in the workplace.

The importance of integrity assessments and profiling on existing staff:

* Apart from effective screening on a pre-employment level, monitoring and re-assessments, especially regarding ethics in the work place, are crucial. This will enable both the client and their contractors to take pro-active steps in case of undesirable conduct.

* Negative behavioural patterns of employees which have already manifested and which may be to the detriment of a company, may be identified. Research has proved beyond any doubt that defrauders have generally been in the employ of a company for a couple of years, and are usually in a position of trust and authority with access to funds or the power to make decisions.

* Potential assessment is crucial prior to either promoting or transferring employees. Negative behaviour (intentional or unintentional) is often the result of wrong appointments.

* Results of post-employment assessments may be used for training and development.

Behavioural risk and fraud prevention training

Integrity forms an integral part of our human existence - as individuals, but more so co-existing and functioning corporately. We are so used to it that we take it for granted; or under-estimate it at least. It facilitates and guides the living and working of people together - as well as establishing commercial relationships over international borders in this growing global village we live in.

This programme includes a holistic anti-fraud strategy, which includes education of employees, managers and top management of organisations.

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