Background screening matters: Lessons from Wood Group’s CFO exit
- Sam Morice
- Mar 19
- 3 min read
The recent resignation of Arvind Balan, Chief Financial Officer (CFO) of Wood Group - a British oilfield services and engineering company - highlights just how important robust background screening in hiring practices can be. Balan stepped down after it was revealed that he had misrepresented his professional qualifications, claiming to be a chartered accountant when, in fact, he was a certified practising accountant.
While this may seem minor to some, it surely raises concerns about due diligence and risk management. A comprehensive pre-employment screening process could have prevented this situation and helped to safeguard the firm from any reputational and financial damage.
The risks of inadequate background screening
Background screening is not just a ‘tick-box’ step in hiring, it is a critical process that protects businesses from reputational, operational and financial risks. The risks associated with inadequate vetting can be particularly severe for companies operating in regulated industries. The Wood Group case highlights some of the key risks:
Reputational damage
The misrepresentation of qualifications by a senior executive can lead to negative media attention and erode trust among investors, clients and stakeholders. In a highly scrutinised corporate landscape, any perceived dishonesty can be damaging.
Regulatory and compliance risks
Businesses in financial services, engineering and other regulated sectors must adhere to strict industry standards. Any discrepancies in qualifications could lead to regulatory investigations, fines and potential legal action.
Financial consequences
The resignation of a key executive over credibility concerns can cause instability within an organisation, impact investor confidence and affect share prices. At a time when Wood Group was apparently already under financial pressure, this additional controversy further undermined stability.
How thorough screening can prevent these issues
A structured and comprehensive approach to background screening is essential to ensure that employees, especially those in leadership roles, are fully qualified and fit for their positions.
At FeMan Consulting, we specialise in helping businesses mitigate hiring risks by offering detailed screening services, including:
Professional qualification verification – Ensuring that candidates hold the credentials they claim, helping businesses comply with industry and regulatory standards.
Employment history checks – Verifying past job roles and responsibilities to identify inconsistencies in a candidate's work experience.
Regulatory compliance screening – Checking that individuals meet the requirements of regulatory bodies such as the Financial Conduct Authority (FCA).
Adverse media and watchlist screening – Reviewing public domain information to identify any potential red flags.
By implementing these measures, businesses can significantly reduce the risks associated with hiring decisions, protecting themselves from potential reputational and financial harm.
The need for ongoing screening
Screening should not be a one-off process conducted at the point of hiring. Companies should periodically reassess employees, particularly those in leadership positions, to ensure their qualifications and professional integrity remain intact.
This is especially important under the Senior Managers and Certification Regime (SMCR), which holds senior individuals in financial services firms accountable for their conduct. Additionally, legislation such as the Economic Crime and Corporate Transparency Act 2023 increases scrutiny on corporate fraud prevention and accountability. Regular background checks can help businesses remain compliant and reduce their exposure to legal risks.
How FeMan Consulting can help
The Wood Group's case is the perfect example of how even seemingly minor misrepresentations can have significant consequences. However, with the help of FeMan Consulting's thorough and ongoing approach to background screening, companies can prevent similar issues and ensure the highest professional and ethical standards are met.
FeMan Consulting has extensive experience in helping businesses protect themselves from the risks associated with misrepresentation. Our background screening services provide a meticulous, structured approach to ensure that key personnel meet the highest professional and ethical standards.
By investing in robust background checks, businesses cannot only avoid costly disruptions, reputational damage and regulatory penalties but also ensure a more stable and profitable future.
To learn more about how FeMan Consulting can support your organisation, contact Sam Morice today. We're here to help you navigate the complexities of background screening and ensure your business is protected.