One only has to read recent headlines to see how employees, including CEOs and CFOs, have caused damage to company reputations and wrought havoc with share prices. How does this happen and, more importantly, how can it be prevented? The reality is that human nature being what it is, not every person is as honest as one would like. Although total prevention is impossible, minimizing the risk through stringent reference checks, for example, is a very practical solution.

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