Understanding Insider Risk
Every year, the US loses more than one trillion dollars to workplace crime with more than half attributed to employees. This insider risk ranges from a distracted worker making inadvertent mistakes that create organizational risk, to an employee battling personal financial stress who is susceptible to steal or commit fraud, to the employee hiding misconduct and vulnerable to exploitation.
Insider risk varies for different industries, companies and employee roles and positions. Positional risk is important because not every employee represents the same level of risk to their organization. Insider risk is defined by the level and extent of physical or information access, and effective risk management requires policy and process to reflect the context and risk related to various jobs and positions.
Criminal Activity Outside the Organization Often Leading Indicator of Workplace Crime
Criminal activity is a key consideration when evaluating the risk of potential of employees, contractors, vendors, and partners. Most pre-hire background checks focus on criminal conviction records. Awareness of convictions, while valuable for applications, often creates a significant gap in risk post-employment due to the time delay between the original arrest, subsequent conviction, the posting of the conviction to public criminal databases, and most significantly, the timing to initiate the search. ClearForce eliminates this gap in risk with real-time notifications of criminal arrest as the earliest indicator of criminal misconduct.
Financial Stress Can Cause Insider Threat
Many conditions can make a trusted employee susceptible to steal or vulnerable to blackmail or coercion. An employee may face financial stress for a variety of life events. Most financial events are dealt with constructively, but some financial stress festers and turn a trusted employee into an insider risk to the organization.
The following diagram illustrates the various reasons a current employee might enter into financial stress.