November 27, 2019

Blogs

Vendor Due Diligence- Your Aid to Organisational Safety & Compliance

In today’s competitive and fast-paced business scenario, organisations have to streamline their operations to optimise profit and growth. Third-party outsourcing is a popular trend across industries and countries. Outsourcing certain tasks to a third-party vendor saves cost and time. Yet, there are inherent risks of outsourcing. Businesses have to ensure that confidential and sensitive information is protected. They also have to verify if the vendor carries out ethical processes while ensuring a safe and healthy working environment.

Vendor due diligence is cost effective

As the third-party contractors are partners to success, vendor due diligence before hiring them is critical to business objectives, success, the brand, customers and financials. As per studies, intangible aspects such as the reputation and goodwill account for 80% of businesses’ market value.

Vendor due diligence is the ideal way to check if the vendor meets all the criteria including confidentiality, compliance with regulations and ethical practices. Business due diligence is necessary to mitigate risks and to protect reputation.

With globalisation, the retailers deal with suppliers and contractor across the world and this adds another element of risk to the business. As new products emerge, new contractors or suppliers are likely to be added by retailers. With each new supplier, the costs related to auditing and compliance activities increase.

Vendor due diligence reports curated by professional agencies helps retailers and business owners to achieve a cost-effective way of ensuring the compliance of vendors.

How commercial vendor due diligence ensures organisational safety?

Vendor due diligence is a component of risk mitigation best practices. Vendor due diligence can ensure the vendor is legally compliant, has the required licenses and permits in the region of operation. Vendor due diligence also ensures the third-party contractor complies with anti-corruption legislations including the UK Bribery Act, US FCPA and the Indian Prevention of money laundering Act.

A professional agency specialising in vendor due diligence can help confirm if the claims made by the vendor are genuine and that there are no unfair trade practices carried out.

Also Read: How to mitigate risks with Vendor Due Diligence?

The aspects that are checked under vendor due diligence risk assessment

Vendor due diligence involves verification of

Financial profile, including the quality of earning, assets, tax, commercial due diligence and the volume of products handled
Supply chain gaps
The third party supplier’s compliance with legislation, service agreements

Credit ratings
Directors
Charges
Legal or regulatory compliance
Financial details
Shareholding patterns
Related companies
Trademarks
Documents
Database & media checks
Organisational structure
Organisational capacity, operating procedures
Building or personnel security
Data security systems
Insurance coverages

Vendor due diligence from professional providers

The world is expanding with greater emphasis on partnerships and alliances, hence setting the right tone with good vendors is a plus for every business. An automated and a robust 3rd-party solution would help organisations to streamline their end-to-end 3rd-party due diligence program, from vendor onboarding to risk assessment, due diligence reporting, information management and corrective action implementation.

Finding and working with the right vendors is critical to the organisation’s success, reputation and operational efficiency. Given the technological disruptions and data thefts across industries, the importance of conducting a thorough professional vendor due diligence cannot be stressed more.

AuthBridge is equipped with cutting-edge technology tools to carry out business due diligence across industries in a quick, cost-effective and efficient way. This helps businesses develop a better understanding of their vendors, gain insights on strengths, weaknesses and opportunities with the partners and alliances. With vendor due diligence, hiring the right vendor becomes hassle-free.

By admin, 5 yearsNovember 27, 2019 ago

Blogs

The Importance of Education Verification Check

The education verification process is one of the most important aspects of background screening. The workforce of today needs to have some form of educational qualification for their work, be it a blue-collar job or a white-collar one. Understandably, companies might want to trust the applicant’s educational qualification based on the appearance of their documents. However, it is extremely important to legally check any educational claims made by the candidate.

The market conditions are increasingly becoming tougher, forcing individuals to resort to any means to get a job. It has been observed that a significant number of job applicants are indulging in misrepresenting their qualifications to make themselves appear as suitable candidates. Unethical practices like degree forgery, false institutes and fake claims are not quite easy to detect, hence raising the need for background verification. India produces an average of 2 to 2.5 million graduates a year. With such an enormous influx of degree holders, it becomes all the more important to have stringent education check policies.

Reasons for conducting education check

1) Identifying gaps between knowledge and job requirements- The candidates that you hire, must be qualified enough for the position they are applying for. Conducting a thorough screening of the educational background reveals details about the subjects taken up by the candidate and their relevance to the role.

2) Safeguarding against fake degrees and diplomas- Diploma mills, providing fake degrees to candidates, are on the rise. These institutions provide fake certification in exchange for money and thus create gaps in the educational system. These institutions are not affiliated with any recognized body or government agency. Rather they partner with independent agencies whose curriculum and standards are not in compliance with the legally dictated norm.

3) Confirm authenticity and relevance of foreign degrees- Seeking education in foreign countries is a popular trend among students. The curriculum offered in those countries may not match completely with the job description. Moreover, the authenticity of the foreign educational institutions and the value of their degree must be confirmed as a part of the education verification process.

Also Read: Verify the “Master in Deceit” with Education Verification

How do companies verify education checks?

Education verification of degrees and diplomas is usually conducted at the in-house offices of the institutions. Companies and institutions also rely on 3rd party education check services, as they have their own proprietary databases for verifying the claims of the individual. There are several parameters that are to be checked and validated while conducting education verification.

1) Confirming Name and registration number- This is basically a form of identity check. By tallying the name and roll number of the candidate with official institute records, one can confirm whether the individual has truly attended the university that is being claimed.

2) Verifying course details- This education verification parameter is of critical importance as it forms a direct link between the education the applicant has received and the job role that is offered. This involves making a note of all the subjects that were taken by the candidate and verifying their relevance to the job.

3) Year of passing- Many candidates falsify their dates of graduation as young candidates are increasingly sought after by companies. Education verification of graduation records can be easily accessed by contacting the institution mentioned by the candidate.

4) Status of graduation- This basically ensures the quality of the candidate. Candidates with lower grades or drop years are usually not preferred by businesses. The nature of the job may require candidates with high skills and knowledge. Candidates may lie about their grades or hide their drop years. Such discrepancies are to be identified during education verification to ensure high-quality hiring.

5) Whether the institution has been declared fake by regulatory bodies- As mentioned above, fake institutions and diploma mills are proliferating. Verifying the authenticity of the educational institute can help safeguard the company against candidates from such dubious institutions. This can be achieved by verifying the institution against details provided by regulatory bodies like UGC.

By admin, 5 yearsNovember 27, 2019 ago

Background Checks

Credit Check – Why Employers Look into an Employee’s Credit History?

What is a Credit Check?

Employee Credit check, simply put, is when an employer pulls out the financial records of an applicant or current employee, to have an overview of their financial history. How is this relevant to an employer or the organisation as a whole? Credit checks are a very much relevant process before on-boarding a candidate as it shows just how fiscally responsible a person is, and this reflects the kind of attitude they will show to company finances. It is well-known that any kind of business responsibility is accompanied by a financial responsibility.

Regardless of what position an employee holds, the company needs to be able to trust them when it comes to money, and a thorough credit history check makes this possible. This is a kind of assurance to the organisation that their employees will not cause any financial mismanagement like frauds or any other crime, which would be a huge loss for them. As per the findings of a survey conducted by the Society of Human Resource Management (SHRM), as much as 60% of all employers conduct a credit default check on their prospective.

Especially in industries and companies where employees have to handle huge amounts of financial transactions like accounting and banking, and for executive-level positions, a credit check is necessary. This is because there is a much higher chance of financial frauds being committed in these areas.

What exactly does a credit check verify?

A credit check reveals certain information about an employee, especially in relation to his or her finances. Usually, an employer will have access to information like the employee or candidate’s credit card and debit card debts, payment and default history, details of any delayed payments, loans, and so on.

In addition to this financial information, a credit default check also verifies the personal details of the employee or candidate through national ID checks. This helps organizations verify the name, age, address, and other important details of the candidate. It is important for employers to note that in India, there is a law that prevents anyone from using another person’s credit information, and if anyone is found guilty of making changes or leaking any kind of credit data, there are strict penalties that have to be met.

This law is called the Credit Information Companies (Regulation) Act, of 2005. And in the U.S., there is a similar law that regulates the use of consumer credit card information, known as the Fair Credit Reporting Act, commonly referred to as FCRA. As an employer, you must ensure that the sensitive information of employees or candidates must be handled in a professional and responsible fashion. Make sure you never share such confidential information with a third party or alter any details under any circumstance.

Also read: Best Practices in Credit Check: What you should look out for?

Why a credit check is a necessary step in the hiring process

While it is the responsibility of the employer to conduct thorough credit history checks in the best interest of the organization, it is important to understand why a credit check is such a crucial part of the employee screening service. For any organization, how you handle finances and the integrity of your entire business is co-dependent. If you hire an employee who has a history of financial mismanagement, it could destroy your reputation and brand image.

Especially if the position that the employee fills is that of a leadership level or any role directly related to your company’s finances, the risk is much higher. However, thoroughly vetting any candidate using credit checks, irrespective of their positions, will prevent such risks. Moreover, how a person handles his/her finances tells a lot about their attitude, intentions, and the kind of person they are. With a credit check, you can easily flag any credit default cases, and understand how responsible they are, helping you avoid many troubles in the future.

By admin, 5 yearsNovember 27, 2019 ago

Background Checks

Resume Verification is key to an Organisation’s Success

Did you know that 1 in every 6 job applicants lie on their resume? It’s true. As reported by The Economic Times, providing false information about oneself in CVs is an extremely common practice among job candidates today, and it is rapidly on the rise. In fact, the number of people who misrepresented information increased by a staggering 50 percent in 2017 compared to statistics in 2016 (Refer to this AuthBridge Research)

So, as an employer, what can you do to ensure that your business is not negatively affected by such fraudulent applicants? An in-depth resume background verification including CV validation as well as verification is the perfect 360-degree solution for your organisation.

Whether it’s forging certificates, salary slips, providing fake references or lying about one’s employment tenure, these are all considered serious crimes that could not only cost applicants the job they want but could also land them behind bars. And since such fraudulent practices are so common, it has never been more imperative to conduct a thorough and extensive resume verification. In fact, it is your only way to ensure that the information provided by applicants is true and accurate. Think of resume verification as the first safety net that your organisation can put up. This way, you take preventive measures at the start, that is, the hiring process itself, so you can save yourself a ton of problems later on. After all, well begun is half done.

Also Read: Resume Verification is key to an Organisation’s Success

Resume Verification: An element by element analysis

A thorough resume verification process should include certain checks that cover each and every aspect of information provided in the resume. Below, we outline which areas you should not miss out on while verifying the resume or CV for the job applicants.

· Education Verification

Among the 1 out of 6 candidates who lied on their resume, 1.56 percent misrepresented information about their education in 2017 (Ref: AuthBridge’s Annual Trend Report). And this is just considering the discrepancies which were found out. Your resume verification service must verify the education credentials applicants present on their resume to make sure they are properly qualified for the job.

· Employment Verification

No CV validation process can be complete without a comprehensive employment history check. A whopping 12.14 percent of all reported job applicants misrepresented information about themselves related to their employment history like which positions they held in which organisation and for how long, and so on. So, make sure you verify all employment-related information of your applicants.

· Identity verification

No kind of background verification, including a resume verification is complete without a thorough identity verification. This is one of the most basic, yet extremely crucial checks that organisations must include in their hiring process. If an applicant is not the person he or she claims to be, chances are their entire resume is a lie. In 2017 alone, as much as 4,352 candidates provided fake IDs (Aadhaar, PAN, Passport, Voter ID).

· Address check

6.67 percentage of applicants provided false information regarding their address in 2017 as reported by The Economic Times. Therefore, to ensure that applicants do not indulge in such fraudulent practices, and to verify their addresses so you can easily reach them in case of any emergencies, make sure your resume verification includes an address check.

· Reference check

It’s a common practice among many job applicants of today to provide false reference letters or fake referees. In fact, 2.99 percent of cited referees did not respond in the year 2017, while 3.35 percentage of discrepancies in resumes were related to references. Therefore, make it a point to always cross-check every reference that applicants provide as part of your CV validation process. This practice will save you a lot of time, resources and trouble in the future. Ensure that the candidate’s resume states the correct information with background checks before investing your trust.

By admin, 5 yearsNovember 27, 2019 ago

Background Checks

Top 5 Checks to Consider for Conducting Background Verification

A resident of Ahmedabad was shocked when he suddenly received a phone call asking if he was the guarantor of a loan. When he verified the same at his bank, he found that someone had used his PAN number along with two years’ IT returns and changed the relevant information to obtain a loan. Such identity frauds are increasingly behind major financial and other scams. Background checks serve the purpose of building trust and mitigating these risks. Background checks play an important role in organisations while hiring, sanctioning out a loan, for provision of services, before renting out a house and so on.

Roping in a tech-enabled professional Background Verification agency, ensures the validation of identity, profile and reputation.

Five important background checks

Five of the most commonly used background checks include:

Identity Verification:

According to Experian India, identity theft accounts for a major chunk of fraud in India. About 85% of identity frauds are related to auto loans, credit cards and mortgages, as per the Experian report. The mortgage loans portfolio has witnessed a 50% rise in identity fraud. Business alliances, joint ventures, and partnerships thrive on mutual trust and reliability which can only be ensured by comprehensive background checks. Identity verification is part of the comprehensive background checks conducted using tech-enabled platforms at AuthBridge. The following background checks are integrated with Identity Verification:

Passport verification
Driving License check
Voter ID verification and more

Education Check:

Misrepresenting facts related to educational qualification is one of the most common frauds committed in India. Fake documents are created to access multiple loan products, employment, enrolment in educational institutions, and so on. One of the best ways to counter fake documentation is to conduct a thorough background check that includes education checks. At AuthBridge, multiple databases are accessed to conduct the following aspects of education:

Roll or Registration number of the candidate
The course passed or pursued by the candidate
The year of course completion
The genuineness of pass certification
The affiliation and accreditation check of the institute/course

Address Check:

There was a discrepancy in more than 6% of the candidates’ provided addresses in 2017 according to the AuthBridge survey. Physical address verification is a critical component of background checks as it is the first place that employers, business entities, credit card companies or banks look into in case of anomalies. Using mobile-enabled location tagging cutting-edge technology, AuthBridge can effectively track the following details regarding the physical address:

Whether the given address is correct
Whether the address mentioned in the resume or document tallies with the actual physical address
How long the candidate or individual has been staying at the given address
Whether the individual owns or has rented the residence
Relationship of the candidate with the person verifying the address details

Criminal Records Check & Police Verification:

Multiple records in the public domain, including those maintained by various courts, police records, and CBI, SEBI, and RBI lists are accessed by AuthBridge to derive actionable, accurate data regarding the criminal history or litigations. Both civil and criminal litigation records are verified as part of the complete background check. Checking criminal records history is critical to hiring individuals who are required to handle sensitive and confidential information and transactions in financial institutions.

Reference Check:

As per an AuthBridge study, more than 3% of reference checks had more than one discrepancy in 2017. Many HR professionals and business entities do not have the time to conduct a thorough reference check, which is essential to hiring the right candidate. AuthBridge conducts telephonic verification of references provided to check the performance, skills, and abilities of the candidate.

Also Read: Background Verification: Why Companies Need Greater Vigilance?

By admin, 5 yearsNovember 27, 2019 ago

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Featured Resource

Vendor due diligence is cost effective

How commercial vendor due diligence ensures organisational safety?

The aspects that are checked under vendor due diligence risk assessment

Vendor due diligence from professional providers

Reasons for conducting education check

How do companies verify education checks?

What is a Credit Check?

What exactly does a credit check verify?

Why a credit check is a necessary step in the hiring process

Resume Verification: An element by element analysis

· Education Verification

· Employment Verification

· Identity verification

· Address check

· Reference check

Five important background checks

Identity Verification:

Education Check:

Address Check:

Criminal Records Check & Police Verification:

Reference Check:

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