Navigating Workforce Risk: Insights From the Experts

Organizations today face unprecedented challenges in managing workforce risk, whether related to identity fraud, insider threats, or access governance.

First Advantage recently hosted “Rethinking Workforce Risk: Who’s Accountable?”, an insightful webinar where I joined other First Advantage leaders to explore strategies for identifying, mitigating, and assigning accountability for workforce-related risks. Moderated by Savanna Leavitt-Green, Sr. Director, Strategic Consulting, the panel also featured Jon Black, SVP of IT Operations.

The state of workforce risk

Savanna set the stage by addressing the growing complexities of modern hiring and employment practices. “Today’s workforce is faster, digital, global, and distributed,” she noted, highlighting how these changes create less visibility at the point of hire and greater opportunities for identity theft, fraud, and operational vulnerabilities.

Key statistics provided by Savanna underscored the gravity of the issue:

• Synthetic identity fraud accounts for nearly one-third of identity fraud cases, with fraudsters using convincing fabricated identities that evade traditional screening processes.¹
• It’s projected that one in four candidate profiles globally could be fake in the next two years.²
• 76% of hiring managers report encountering employment discrepancies during onboarding.³

Workforce risk ownership: more than just HR

Jon reframed traditional approaches to risk management, advocating for cross-functional accountability. “For a long time, hiring risk was largely an HR question. But today, the consequences of a hire don’t stop at recruiting and onboarding.” He explained that bad hires can impact financial performance, operations, compliance, security, and reputation.

I agree that effective risk mitigation requires shared accountability across HR, security, IT, compliance, and legal teams. Workforce risk requires shared accountability, and the most mature organizations integrate workforce screening, compliance, trust and safety, and employee risk management into one unified program.

Strategies for managing workforce risk

1. Expand risk management beyond employee screening.

Most organizations focus heavily on pre-hire screenings, but Jon and I both stressed the need to manage risk throughout the employee lifecycle: recruitment, onboarding, day-to-day work, transitions, and offboarding. Jon noted, “Unlike traditional workforce screening programs, modern workforce risk management spans the entire employee lifecycle.”

2. Conduct ongoing risk and access monitoring.

Key stages like hiring and onboarding bring unique risks, especially in IT access provisioning. Jon warned against privilege creep, where employees accumulate unnecessary access from roles they no longer occupy. “Don’t copy access. Make sure you understand the required roles and discreetly provision access on day one,” he shared.

During employment, constant vigilance is required. I highlighted emerging threats like fraudulent remote workers, including cases in which seemingly legitimate new hires log in from overseas “laptop farms” for malicious purposes. Pre-hire controls often fail to detect these actors, who may operate under fabricated credentials to siphon salaries into hostile territories.

Organizations must actively monitor technical signals like unusual network activity, payroll anomalies, or IP address changes. Jon shared scenarios in which minor signals revealed alarming breaches in major organizations, showing how proactive context-sharing across teams could prevent harm.

3. Secure offboarding processes.

Offboarding is another vulnerable stage, as dormant accounts can lead to compliance violations and insider threats. “Every account, every credential, every system access needs to go dark on the same day,” Jon explained, emphasizing collaboration between HR, security, and IT for swift deprovisioning.

However, he noted gaps in awareness around offboarding signals. “This is where context-sharing falls short,” he remarked, explaining that disconnected systems and siloed teams often miss crucial warning signs, leaving organizations exposed to threats.

4. Align stakeholders with shared ownership

Creating shared ownership among stakeholders is the cornerstone of effective risk management. In my view, the first step isn’t buying new technology; it’s creating shared ownership. Get the right teams together to define roles and what success looks like.

Key areas of collaboration include:

• HR: Coordinates workforce risk programs and policies and oversees screening and onboarding.
• Compliance and Legal: Ensure audit readiness and mitigate legal exposures.
• Security: Focuses on pre-hire identity verification and ongoing insider risk monitoring.
• IT: Provides technical signals and integrates access control systems.
• Executives: Establish governance frameworks and risk tolerance while holding teams accountable.

Key trends impacting workforce risk

I also highlighted emerging trends, including the growing threat of AI-driven fraud and insider risks. AI is tailoring resumes and profiles to job descriptions, creating the perfect candidate, which is a pressing challenge for organizations.

Savanna shared poll data showing most companies now involve multiple stakeholders in workforce risk management decisions, a promising sign of progress. Still, the panel noted widespread gaps across industries, especially in integrating data, signals, and accountability into cohesive programs.

Workplace vulnerabilities are escalating, driven by more sophisticated fraud techniques, remote work patterns, and disjointed processes. As Jon summarized, “Risk for your workforce exists throughout the entire employee lifecycle, and organizations must address it from multiple angles.”

From pre-hire screenings to ongoing monitoring and offboarding, mastering workforce risk management requires cross-functional collaboration and robust accountability frameworks. Fortunately, programs like those offered by First Advantage provide tools and guidance to help organizations work through these challenges effectively.

Contact us to learn more about building successful workforce risk mitigation strategies for your organization. Make workforce risk management a priority, both for today and for the challenges of tomorrow.

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