Pre-employment check, supply chain review, due diligence and audit, all help to assess risk associated with potential (or existing) employees, suppliers and vendors, agents and intermediaries, transactions (and parties associated with them).
Risk assessment could identify a material red-flag or risk which, if the relationship is to continue, may require risk-mitigation and monitoring to be implemented, to inform senior management risk-appetite.
Relying on uncorroborated employer references may be of limited value. Some employers are reluctant to make negative statements, for fear of legal challenge. Some individuals might also create their own references on 'borrowed' letterheads of former employers.
Chartered Institute of Personnel and Development
CIPD guidance includes: 'employers need to conduct due diligence in order to find out if applicants might bring the organisation into disrepute, or cause difficulties with colleagues, managers, customers or suppliers.... Vetting is a key element in conducting ‘due diligence’ in relation to the recruitment process'.