Business entities that do not take the pain to conduct thorough background checks on potential employees face a considerable risk which could lead to dire consequences on their operations, business risk specialist Harry Baiden has said.In 2016, the Bank of Ghana stated that financial institutions reported about GH¢240 million in a number of fraud cases largely perpetuated by staff – a situation Mr. Baiden said could be mitigated if these institutions undertook mandatory background checks on potential employees.Speaking in an interview with the media, Mr. Baiden, Managing Director of Gavac Business Solutions, a business risk solutions provider, said although there is no legislation that requires companies to conduct checks on potential staff, it is in businesses’ own interest to undertake such checks.“It is up to the hiring institution to conduct such checks, which is now an essential component of institutions compliance with regards to boarding an employee. Most international firms operating here consider that mandatory as it is a hiring/boarding requisite in their country,” Mr. Baiden said.According to him, “knowing exactly who you are hiring with respect to their work, educational, certification and criminal background is vital for the businesses growth. Non-adherence, leads to wrongful or negligent hiring which not only puts the business, brand, investors at risk but its employees as well.A businesses failure to conduct background checks shows deficiencies in procedures and policies, failures in a firm’s screening also indicates weak compliance. A business committed to growth, investor, brand and employee protection ensures pre-employment checks are a major part of its compliance check list.”Statistics from the Association of Certified Fraud Examiners (ACE) shows that in 2012, a typical organization lost about five percent of its total revenues to occupational fraud, a situation largely blamed on human behavior.Mr. Baiden maintains that the impact of such theft on businesses vary, ranging from minor impact to a total wipeout of the business. The CEO of Gavac Business Solutions added that when companies commit to conducting such background checks they are saving themselves from potential troubles that may be visited on them by rogue employees.Mr. Baiden who established the company after several years abroad said there exists a gap which GBS intends to fill as far as business risk and human resource is concerned.“What we do is to provide thorough background reports and information essential to recruitment through partnering with Human Resource departments and information gathered by our top-notch investigative team.We capture and record any and all data concerning individuals and employees reported, ranging from felonies, misdemeanours, employment and educational history, which report is generated for candidates being considered for appointment, engagement or disbursement of a credit facility,” he added.