Managing employee risk involves sound hiring practices, orientation and training, active supervision, and ensuring accountability for losses. Employers should evaluate hiring practices including background checks, skills testing, and interviews. New employees should be oriented to company policies and procedures through formal training. Supervision includes auditing employment practices, evaluating employee performance, and identifying ineffective processes. Employers must ensure employees understand processes for reporting losses or problems and that accountability focuses on responsibility, mitigation of future losses, and compliance with laws.