Tuning Risk Reviews: A Pragmatic Approach to Fraud and Drop-off Mitigation

## The $50K Hallucination Imagine this: your AI model just produced a series of erroneous candidate scores, leading to a $50K loss in customer refunds due to hiring the wrong talent. This scenario underscores the critical need for robust risk management practices. Every week, your engineering team faces the daunting a

tack of tuning the hiring process to mitigate risks, but without a structured approach, those adjustments can feel like shooting in the dark. The stakes are high, and the cost of inaction can be staggering—think wasted resources, damaged brand reputation, and compliance exposure. Implementing weekly risk reviews is not

just a good practice; it's a necessity for maintaining the integrity of your hiring pipeline and safeguarding your organization's bottom line.

## Why This Matters For engineering leaders, the implications of poorly managed fraud risks and candidate drop-off rates are profound. As candidates navigate your hiring process, they expect a seamless experience. When that experience falters, it not only affects your hiring metrics but also tarnishes your employer's

brand. Risk reviews serve as a safety net, allowing you to identify and address potential vulnerabilities before they escalate into costly errors. Additionally, by focusing on leading indicators—such as telemetry data from your hiring tools—you can make informed decisions that enhance both candidate experience and your

organization's overall efficiency. This proactive approach ensures that your team is not just reacting to issues but is positioned to prevent them.

## How to Implement It Step 1: Establish a Weekly Review Cadence Set up a recurring meeting with your engineering and recruiting teams to discuss weekly risk metrics. Use this time to review telemetry data, fraud patterns, and drop-off rates. Make sure to involve all relevant stakeholders to gather diverse insights.