Entire companies have been taken down by the reckless behavior of one person. Even if they don't set out to cheat, steal, or lie, people can still do stupid things. Here are three ways to minimize risky behavior:
Hire right. Don't rely on resumes and references. Anyone can fake those. Consider going a level deeper and doing employment and background checks. Some risk-averse companies also conduct behavioral and honesty testing to screen employees.
Incentivize the right behavior. People don't do what you tell them to do; they do what you pay them to do. Make sure your company's performance measurement and incentive systems don't encourage the wrong behaviors.
Create an open culture. People shouldn't be afraid to speak up when they see something fishy. Make sure you have risk escalation and whistleblower processes in place and actively encourage people to use them when necessary.
Source: Harvard Business Publishing : Today's Management Tip was adapted from "Five House Rules for Managing Risky Behavior" by James Lam.