Not running background checks can lead to various risks for an organization such as ending up with a bad hire, non-compliance to ISO requirements, organization brand value, and reputational risk, safety risks, as well as financial liability risks.

In context of employment, not doing Background verification (BGV) can lead to induction of a wrong hire (or a hire with a malicious past), that can in turn adversely impact the team culture, or even result in modern-day threats related to data security.

According to a 2014 survey, a wrong hire can single-handedly bring down the team productivity by 15% and can cause negative financial impact accounting for 10 times the cost to the company (CTC).