Orsus Group Blog

Screening High-Level Hires in the Financial Industry

Written by The Orsus Group | Jun 12, 2023 12:00:00 PM

In the financial industry, thoroughly screening high-level hires is crucial to protecting a company’s financial health, reputation, and long-term legal compliance. Whether it’s an applicant’s criminal history, issues with substance abuse, or inaccurate qualifications, it’s essential for organizations to identify these and other concerns early in the screening process to mitigate threats to sensitive financial and personal data, especially since high-level employees often have greater and more regular access to this information. 

By implementing best practices, such as conducting comprehensive background checks, verifying employment history, confirming credentials, and checking references, companies can ensure they are hiring individuals who are trustworthy, competent, and ethical. In this article, we’ll explore the benefits of conducting executive screening in the financial industry and discuss the types of screening which are most useful.

Overview & Common Concerns

Just as it’s essential to screen employees, contractors, and vendors to ensure they are not a potential risk to your organization, candidates for executive positions should also undergo an extensive screening process. Banks, fin tech companies, credit unions, and financially-regulated companies are especially vulnerable to internal fraud, identity theft, and other crimes due to executives’ frequent handling (and potential manipulation) of company money, as well as sensitive financial and personal data.

Insider fraud, as just one potential threat, usually occurs well into an employee’s tenure with a company, once they have gained access and familiarity with various systems and processes, and identified loopholes or security weaknesses. This issue alone can lead to substantial legal costs, fines, and the potential suspension or barring of firms. Similarly, acts of identity theft can cause long-term legal issues as well as reputational damage, creating distrust among employees and clients regarding the safety of their sensitive data and the measures being taken to protect it.

Fortunately, more extensive screening options are available to protect businesses and to help them identify potential red flags early in the hiring process, whether it’s a candidate’s past dismissal for accusations of fraud, embellished educational qualifications, or a substance abuse issue that could go undetected without drug screening or reference checks.

How to Conduct Screening for a High-Level Hire

Before creating a job posting, your company should be clear about its top priorities for the executive position. This means not only articulating employment and education requirements, but also the desired (or necessary) personality traits for the position.

Once this is clearly established, it’s important to prepare for a customized background screening process that includes a criminal background check, confirmation of personal & residential information, and range of other checks we’ll explore below:

  • Employment Verification – In addition to confirming skills, aptitude, and job performance, employment verification should include interviews and reference checks to identify past issues or inaccuracies if they exist.
  • Education Verification – With embellished qualifications as a common issue in the hiring process, education verification can help you quickly confirm educational credentials and ensure alignment with an applicant’s resume details.
  • Financial Regulatory – This is a vital check for high-level hires in the financial industry, as it identifies any past or current financial sanctions, disciplinary action(s) taken by any financial regulatory body, and an applicant’s past/documented responsibilities accounting, budgeting, handling investments, and more.
  • Adverse Financial/Credit Report – This check provides important information about a potential hire’s management of their own finances and any negative credit, bankruptcy, or debt history. This check can be conducted to reveal details for multiple countries.
  • International Services – Depending on the position or the applicant’s past work history, you may need to conduct a more thorough international search for criminal history, employment verification, education verification, and other details.

Some financial institutions opt to bypass background checks for high-level hires, citing costs or time spent during the hiring process. In truth, the legal and financial damage that could occur without properly vetting a high-level hire is far more significant than the investment required to run a thoughtful screening and enjoy peace of mind about a new hire.

The checks we’ve explored are essential to prevent fraud, embezzlement, identity theft or other potential issues that could occur after hiring a new executive. Of course, it’s important to choose and collaborate with a qualified background screening provider who can help you formulate a screening approach that closely adheres to your hiring goals, priorities, and specific needs as a financial organization.

Screen Executive Hires with The Orsus Group

If you're looking for a reliable screening company to help with executive screening and customizable background checks, partner with The Orsus Group. We offer a comprehensive range of screening services and years of expertise to help you make informed hiring decisions. It’s time to hire confidently, knowing that your high-level hires have been thoroughly vetted. 

Contact us today to start the process.