Presentation Transcript

1. Security Clearance Awareness Seminar“Employment Efficacy Solutions”

2. Welcome Welcome Agenda Speakers Dave Holmes – Insider Threats and Incidents Don Cooper – Security Clearance Process Andy Davidson – Personality Assessments Mike Caldwell – C U CLEAR (What we do) Ozzy Ramos – Closing Remarks Closing Remarks
3. Objectives Identify Internal and External Personnel Threats Clear up the misconceptions regarding the Security Clearances & Background Investigation Process (what it does and doesn’t do) The Security Clearance/Background Investigations process and Background Checks (Screening) Exercising Responsible Due Diligence Employer Culpability and Risk of Liability Considerations for Exercising Due Diligence in Personnel Decisions Innovative Methods to Meet Challenges
4. Modules & Topics to be Covered Module 1: Introduction Module 2: The Pitfalls of the Security Clearance Process Module 3: The 360 Degree Review & Adjudicating Principles Module 4: Background Investigations vs Background Checks Module 5: The Dilemma of "The-DASH" Module 6. 10 Mistakes that Put Employers "At Risk“ A bit more about C U CLEAR
5. Our Mission We provide our clients with cost effective training, investigative, personnel, and security solutions that exceed their expectations. We succeed by using innovation and experience in order to optimize and protect business efficacy
6. Why are you here? Personnel Security Management Identifying Workforce Threats Internal & External Contributing Factors Pipeline Qualifiers & Career Retention Lifestyle Cycle & Event Driven Impact How to Recognize and Mitigate Threats Employer & Employee Responsibilities Developed Desired Workforce Culture
7. Thought Provoking Questions to Ask Yourself… What type of company are we… Who is observing us… Who are we responsible to… What services do we offer and produce… Who are our clients… Who are our employees… What are we protecting… What trade secrets do we have… How do we protect our competitive advantage in the market… Who has access to our sensitive information… Do we feel comfortable with the existing Employee Security Profile… What works and what doesn’t work… What needs to be changed to make us more compliant with internal objectives and controls. Can we sustain a black eye and/or public embarrassment? What are our associated RISK(s) ?
8. Aaron Alexis Navy granted Alexis a Secret Clearance in March 2008 based on a NACLC background investigation. The Navy knew from the investigation that he failed to disclose on his clearance form a May 2004 arrest for malicious mischief in Seattle, WA, for which he was never prosecuted. Alexis claimed the arrest occurred because he deflated another person's car tires and that he didn't disclose it on his clearance form because the charge was dismissed. He also had some previous delinquent debts, but he was in the process of repaying them While he was on active duty with the US Navy Reserves from May 2007 to January 2011, his Navy command was aware of his 2008 arrest for disorderly conduct, his 2010 arrest for unlawful discharge of a firearm, and at least, two Navy disciplinary boards related to poor performance and insubordination. In addition, he was subject twice to Non-Judicial Punishment and at least one former supervisor FELT THAT HE DISPLAYED INDICATIONS OF MENTAL ILLNESS.
9. Aaron Alexis In January 2011, Alexis was released early from the Navy Reserves with an honorable discharge, and his security clearance was administratively terminated. Alexis was hired by a defense contractor in September 2012 for a position that required a SECRET CLEARANCE. His employer would have checked JPAS (Joint Personnel Adjudication System) record and determined that his Secret clearance was eligible for reinstatement, because his last investigation was less than 10 years old, and less than 24 months had elapsed since his Navy clearance was terminated. He got his clearance.
10. Aaron Alexis To get unescorted access to military bases so that he could do his work as a defense contractor employee, Alexis also needed a Common Access Card (CAC) which is the DoD version of HSPD-12 Personnel Identity Verification (PIV) card. There is a vetting process before issuance; however, HSPD-12 rules allow issuance to anyone with a favorably adjudicated NACI or NACLC (or better) investigation without any further investigation or adjudication provided that the break in service is less than two years. While working at Newport Naval Air Station in August 2013, employer became aware of his instability...disturbed guests...knocking on their doors in search of voices he was hearing. Alexis' mother advised his employer that he had a history of paranoid episodes. No action taken by employer.
11. Aaron Alexis What Went Wrong? Access....CAC HSPD 12 PIV without any additional vetting Lack of training - Culture of "do nothing"..."Culture of "move the problem” Right level of clearance - background investigations for Secret limited....price difference.....culture of "most cost effective"...vs. the most effective at cost” Non-disclosure requirements and costs associated with Seattle PD to report arrest to OPM What are we doing to fix it? Presidential Mandate to conduct bottom up review Senate Oversight Committee – proposals C U CLEAR position
12. Aaron Alexis Discussion Q&A Culture of Complacency

13. Security Clearances

    Mr. Don Cooper
14. Discuss Various Aspects of Security Clearances Process The Security Clearance Processes The Investigative Process Adjudication Process and the “13 Adjudicative Guidelines” The Pitfalls of the Security Clearance Process The Gaps in the Process “The Dilemma of THE-DASH”
15. Levels of Access vs Types of Investigation Required CONFIDENTIAL SECRET (Serious Damage) Required Form(s): Standard Form 86 (SF-86): NAC with Law Enforcement & Credit Checks (NACLC): Includes electronic checks of various agency databases, local LE agency checks, credit, and written inquiries to education institutions and employments covering most recent 5 years of Subject’s life. (Damage) Required Form(s): Standard Form 85P (SF-85P). Type Investigation: Usually a National Agency Check (NAC) with inquiries (NACI). Search of certain federal records, FBI finger print search, and written inquires to current and former employers covering the most recent 5-7 years of Subject’s life. TOP SECRET (Grave Damage) Required Form(s): Standard Form 86 (SF-86). Type Investigation: Single-Scope BI (SSBI): AKA: `Full-Field. Most in depth. Covers credit & financial, employments, neighborhoods, education verification, law enforcement & court record checks, interviews of references, foreign travel/associations, medical/mental health issues, former spouses/cohabitants. Covers most recent 10 years or back to 18th birthday (which ever is the shorter period).
16. Security Clearance Intervals & Special Programs Periodic Reinvestigations/Updates are required at established intervals. Confidential: 15 year intervals Secret: 10 year intervals Top Secret: 5 year intervals Special Access Programs (SAP): Presidential (Yankee White) Sensitive Compartmented Information (SCI) SAPs may require Counterintelligence (CI) or Lifestyle (LS) Polygraphs Expiration of Security Clearance: If previously cleared, and not currently working in a cleared position your clearance is considered inactive and will expire after a two (2) year period. Initial investigation must be accomplished.
17. Three Phase Security Clearance Process Application: Completion and submission of required PSQ forms, finger print cards, information releases, and any other specified documents & forms. Includes preliminary inquiries/checks and usually NAC is conducted on spouses, and on foreign born relatives/associates, cohabitants.  Field Investigation :(Investigative leads usually conducted in all locations Subject has lived, worked or attended school. Period & activities covered depends on type of investigation and its respective coverage requirements). Adjudication: A judgment rendered by a government agency clearance granting authority regarding a person’s eligibility & suitability for access to classified information based on investigative results in relationship to established criteria.
18. The Investigative Process Interview of References: Individuals who are familiar with, and associated with the Subject through Employment/Business, Neighborhood, Education or Social activities and interaction. May also include interviews of former spouses. Record Checks & Reviews: (Usually Work, Residential, Education, Law Enforcement, Criminal Courts, Civil Courts (Judgments, Divorces, Bankruptcies, Liens, Repos), Credit/Financial records, and any other records, deemed relevant to the investigation. Report of Investigation (ROI): Prepared and submitted by Field Investigators. Reviewed for completeness by Case Reviewers to ensure all required info has been covered and reported per federal and agency personnel security requirements. Once finalized, the ROI and associated documentation are forwarded to the requesting agency for adjudication. Activities & period covered depends type investigation vs clearance level.
19. The Adjudicative Process Performed by Certified Adjudicator Individual specifically trained in the process of reviewing and evaluating security clearance information. Reviews the results of the investigation and compares it to established qualifying eligibility criteria. Examines and assesses all relevant information contained in the ROI and associated documentation pertaining to the periods of Subject’s life covered by the investigation, for the purpose of making a definitive and affirmative determination that the person is an acceptable security risk. Simply put, it’s a judgment concerning a person’s eligibility and suitability for access to classified information based on the established criteria in: “The 13 Adjudicative Guidelines”.
20. The Whole Person Concept “Whole Person Concept”: If there are incidents, actions, or other issues that raise questions concerning a person’s honesty, character, or integrity, the “Whole Person Concept” (WPC) is always used. Employing the WPC involves the careful weighing of a number of variables which includes; all available and reliable information about the person, past and present, (both favorable and unfavorable), when making a clearance eligibility determination.
21. The 13 Adjudicative Guidelines Allegiance to the USA Foreign Influence Foreign Preference Sexual Behavior Personal Conduct Financial Considerations Drugs Alcohol Mental Illness Criminal Activities Security Violations Outside Activities Misuse of Information Technology
22. Aaron Alexis, “The Dash” & The 13 Adjudicative Guidelines Allegiance to the USA Foreign Influence (potential to be Influenced) Foreign Preference Sexual Behavior Personal Conduct Financial Considerations Drugs ? Alcohol ? Mental Illness Criminal Activities Security Violations Outside Activities Misuse of Information Technology? Example
23. Our Solution: Whole Person 360º Concept
24. Adjudication: Mitigating Factors WPC TAKES INTO CONSIDERATION The nature, extent, and seriousness of the conduct; The circumstances surrounding the conduct, to include knowledgeable participation; The frequency and recentness of the conduct; The individual's age and maturity at the time of the conduct; The voluntariness of participation; The presence or absence of rehabilitation and other permanent behavioral changes; The motivation for the conduct; The potential for pressure, coercion, exploitation, or duress; and The likelihood of continuation or recurrence.
25. Adjudication: Final Determination Each case judged on its own merits and final determination remains the responsibility of the specific department or agency. National Security interest is always the determining consideration: Ultimate determination for granting eligibility for a security clearance must be clearly consistent with the interests of national security Final determination must be an overall common sense determination based upon careful consideration of all available information If there are any doubts, determination will always be made in the interests of national security
26. Favorable & Unfavorable Determinations Denials & Revocation Favorable Determination: Result - Clearance is awarded employee starts work. Unfavorable Determinations/Denial/Revocation: Possible Results - Individual notified by agency - Right to appeal under due process - Applicant may retain legal counsel - Hearing/Court Action This Process could take months! May have to keep employee “on the books” (means pay and benefits) until resolved! Ouch!
27. The Dilemma of “The - Dash” What the security clearance process does and doesn’t do! Approx. 5 Million people with security clearances Approx. 1.4 Top Secret (Approx. 480,000 contractors) The Misconception About Periodic Re-investigations Effectiveness of Self Reporting Process Dealing with the Dilemma of ”The Dash”
28. Employer Culpability / Liability & Due Diligence Can An Employer Be Held Liable For The Actions And Behavior Of Its Employees? If Yes, To What Extent? “RESPONDEAT SUPERIOR” It’s Latin for “Let the Master Answer!”. Respondeat Superior is a common-law doctrine taken from 17th century English law that has been adopted in the U.S as a fixture of agency law, and is recognized in both common law and civil law. It makes an employer liable for the actions of an employee when the actions take place within the scope of employment. The theory behind Respondeat Superior is that the principal (employer) controls the agent's (employee) behavior and must then assume some responsibility for the agent's actions. Take note of the phrase “within the scope of employment! ” It does not say, “within the course of performing their assigned job duties”! The lack of a definitive meaning of “scope of employment” has been the catalyst for many a lawsuit! NO MATTER WHO HAS THE LAST SAY, THE LAWYERS WILL GET THEIR PAY!
29. ToScreenor NOT to Screen? Can you Afford to Screen your people? or should the more appropriate question be: Can you Afford NOT to?

30. Personality Assessments

    Dr. Andy Davidson
31. Personality Assessments for Suitability
32. Personality Assessment is a Performance Process How much Risk are you willing to assume? Screening out vs Screening in Unique insight on applicants or employees Is he/she reliable? Can I Trust him? Will he Perform? Benchmark for industry and ethical standards
33. Assessment is an Open Process Scored, analyzed, and interpreted, licensed Clinical or Industrial Organizational Psychologist Battery of objective tests based on normative groups matched with a behavioral interview Determines overall functioning, performance, behaviors, attitudes, satisfaction, safety, health, well-being, emotional intelligence, and forecast potential for success. Align a description of the whole person’s attributes with the organization’s ethos.
34. Assessment is a Continuous Process Team Building Coaching Organizational Diagnosis Organizational Surveys Needs/Work Analysis Stress Management Consumer Research Performance Enhancement Interviewing Support Life Changing/ Critical Incidents Motivational Level Training & Development Leadership Development Reengineering Organizational Development

35. C U CLEAR

    Mr. Mike Caldwell

36. Program ImplementationWhere do you Start?

    Our Collective Team Direction
37. License, registrations, Certifications and Memberships 8a Certification (Pending Approval) System for Awards Management (SAMS) Duns and Brad Street (D&B) Small Business Administration (SBA) Small Women and Minority Owned Business (SWAM) Department of Minority Business Enterprises (DMBE) Department of Criminal Justice System Commonwealth of Virginia (DCJS) Center of Veterans Enterprises under the Department of Veterans Affairs for Service Disabled Veteran Owned Small Business (SDVOSB) Metropolitan Washington Airport Association (MWAA) Virginia Hispanic Chamber of Commerce (VHCC - Member) National Association of Professional Background Screeners (NAPBS - Member)
38. Our Focus Personnel Security Detect & Deter to Prevent Negligent Hiring or Retention Protect businesses and organizations Optimize Human Capital Risk Mitigation Reduce Liability Employment Efficacy Creating an Employment Value System Innovative approach
39. What We Do Specialize Security and Investigative Services Personnel Background Screening Employment Efficacy Solutions Process Driven Organization Innovative Screening Solutions Focus Areas Centralized Case Management System Mitigate negligent hiring practices that reduce Risk 360°“Whole Person Concept” Screen Out versus Screen In Methodology
40. Employment Efficacy Why Screen Employees? When do we Screen? Initial Employment Pre Screening Screen Out versus Screen In Methodology Event Driven / Upon Activation of Need Throughout Employee Life Cycle Periodic, Systematic, & Perpetual Random Background Screening Random Drug Testing Psychological Evaluations Lifestyle Change & Related Events Promotion Mergers and Acquisitions Culture Change Standardized Policies Sometimes people aren’t who they say the are… Predators and Criminals Inflated Resumes Allows for screening out individuals with questionable backgrounds Effective programs lowers overall organizational risk Mitigates Associated Risk Theft / Loss Information Security & Technology Organizational Espionage Financial / Competitiveness Legal Costs / Insurance Sets a security baseline for employees and volunteers First line of defense in protecting organization, personnel, and assets
41. What many companies provide Low cost – low quality - Poor screenings Rapid screening for rapid hiring practices No guarantee on quality of work performed No data scrubbing Instant downloads Copy & paste No bona-fide Investigator validating information obtained Little to no human interface No advocacy for personnel with errors in their background checks (against FCRA Rules) Best Hiring Practice: Hire SLOW - Fire FAST
42. Background Investigations vs Background Screening BackgroundInvestigations directed/controlled by the Federal Agencies Only conducted for federal employees & contractors requiring access to classified info Background Investigations are Federal Investigations Set Investigative Coverage, Update Requirements, & Adjudicative Criteria National Security Implications (Primarily Involves Suitability for Access to Classified Info) Not necessarily a condition of employment for federal employees (may be for contractors) BackgroundChecks directed/controlled by non-government entities & businesses Conducted by commercial “Third Party” Administrative Support Staff Flexible Investigative Coverage, Updates Requirements & Adjudicative Criteria Used to pre-qualify or pre-access candidate Suitability for Employment Should “without a doubt” a Condition of Employment
43. 10 Most Commonly Made Mistakes that Puts Employers “At Risk” Hiring friends, relatives, referrals, or former industry workforce associates. (I never would’ve thought he would do something like that…….famous last words!) The common made assumption that the individual has a security clearance, has already been investigated and therefore must be “clean”. (Remember “THE-DASH”!) Hiring individuals solely based on their resume and prior employment without verifying the validity and authenticity of their claimed qualifications, education, or professional credentials & certifications. (There are plenty of criminals with high IQ’s and Degrees!) Issuing offer letters which do not clearly state that the offer is contingent on the results of the background / drug screening results, and/or placing the individual in critical position before the results are received. (You are stuck with the problem) Failing to exercise responsible Due Diligence by establishing, maintaining & effectively employing up-to-date, pre-employment and ongoing random background & drug screening programs. (Should’ve, Would’ve, Could’ve, But…….You Didn’t!)
44. 10 Most Commonly Made Mistakes that Puts Employers “At Risk” Having no scheduled or periodic system in place after the hire and throughout the employees’ lifecycle with the company. (But he’s worked for me for 10 years and that’s about the same time he’s been molesting children & stealing your money!) Having no effective or required “training and awareness” program in place that is designed to meet internal adherence and/or external third party requirements. (I would’ve told someone if I knew that’s what he meant by “going postal”!) Not fully aware or prepared to withstand a “negligent hiring or retention” lawsuit.(Pay a little now or pay a lot to the lawyers later….win or lose the lawyers will get paid!) Reactive vs. Proactive: Complacency breeds with Negligence to produce a disaster waiting to happen. (As long as the fire doesn’t reach the explosives we’ve got nothing to worry about!) Ignorance of the law is NOT an effective legal defense in a liability suit. (But Your Honor, I didn’t know he kept the “AK” in his desk and shooting at people in the parking lot is not in his job description! But what do you mean by “Respondeat Superior” = Let the Master Answer !!!!
45. TOScreen or NOTto Screen Proactive Approach? Reactive Approach?VS No Effective Programs in Place. Lackadaisical, Complacent, “It Will Never Happen To Us Attitude”! Gambling with Business and Livelihood Lack of Comprehensive Personnel Screenings Greater Potential for Negative Impact/Publicity Increased Risk of Negligent Hiring/Retention Lawsuits High Rate of Personnel Turnover /Personnel & Morale Problems Running in the Dark with Scissors! One Bad Hire Away from Catastrophe! Exercise Of Responsible Due Diligence By Establishing Effective Screening Programs! Lowers Insurance Premiums – Workmen’s Compensation Claims / Health / Fleet Vehicles Maximize Human Capital Investment/ Minimize Liability Risk Onus of Responsibility is put on the Third Party Providers (Screeners) Detect & Deter / Minimize Threats/ Potential Loss Stakeholders Enjoy Sustainable Growth Responsible Due Diligence is Strong “Selling Point” to Keep Current Clients & To Attract New Business
46. Our Solution: Whole Person 360º Concept
47. Mirror & Infuse Federal Government Adjudication Guidelines What We Do Best Allegiance to the Country Foreign Influence Foreign Preference Sexual Behavior Personal Conduct Financial Considerations Drugs Alcohol Mental Illness Criminal Activities Security Violations Outside Activities Misuse of Information Technology Background Screening Criminal Checks Financial Stability Motor Vehicle Education Verification Qualification Validations Employment History Personality Assessments Polygraph Drug and Alcohol Testing Who are we hiring? Value System http://cuclear.com/solutions/risk-management-services/
48. “Building an Organizational Value System through Screening” Screening Level Assignments Level 1: Contractor/Volunteer Level 2: Entry Level Workforce Level 3: Professional Workforce Level 4: Supervisor/Manager Level 5: Executive Leadership Scalable and Manageable Quantifiable Program
49. Workforce Level Assessment Escalation Level I – Contractors/Volunteers Subject Validation Background/Criminal General Information Level IV – Supervisors/Managers Background/Criminal Motor Vehicle Reports Financial Stability Assessment Education Verification Employment Verification Character Reference Interviews Social Media Search National Agency Search Federal Court Records Search Drug & Alcohol Testing Go/No GO Recommendation Report of Investigation Level V – Executive Leadership Background/Criminal Motor Vehicle Reports Financial Stability Assessment Education Verification Employment Verification Character Reference Interviews Social Media Search Media Search National Agency Search Federal Court Records Search Personality Profile Assessment Adjudicating Principle Assessment Drug & Alcohol Testing Go/No GO Recommendation Report of Investigation Level II - Entry Level Background/Criminal Motor Vehicle Reports Credit Report Drug & Alcohol Testing Report of Investigation Level III – Professional Workforce Background/Criminal Motor Vehicle Reports Credit Report Education Verification Employment Verification Drug & Alcohol Testing Report of Investigation
50. Process Overview Client Request Submitted Case Management System - Background - Criminal - Education - Employment - Drug/Alcohol Test - Personality Assessment Case Manager Assigns Each Case (Multiple Investigators) Applicant Request Submitted Email Notification Sent to Client Approved for Client Viewing Investigator Interviews Case Manager Questions Report of Investigation (ROI) Final Report of Investigations Quality Assurance
51. Compliance Regulated & Adherence Consumer Financial Protection Bureau Federal Trade Commission Fair Credit Reporting Act (FCRA) Summary of Rights Fair & Accurate Credit Transaction Act (FACT Act) Consumer Sentinel Network Drivers Privacy Protection Act (DPPA) Gramm-Leach-Bliley Act (GLBA) Privacy Act of 1974 American Disabilities Act (ADA) Personal Identification Information (PII) and all other federal, state, & local regulations
52. Data Protection Email Privacy (PII) Our policy strictly prohibits the transmission of any Proprietary or Personal Identification Information (PII) via any unsecured means to include email. File Protection & Encryption (Share File System) Data File Transfers Encrypted Retention & Disposition IAW company policy File Storage and Destruction Federal Government Standards Industry Standards
53. Personnel Security is what we do We understand this Business Cost Efficient and Effective Extensive Range & Capability External Professional Networks Processed Driven

54. Employment Efficacy Solutions“An Investment in Human Capital”