On dealing with breach

When a company goes through an internal breach of any kind - data, corruption, ethical lapse, etc., the thought, after cleaning up the mess, is to ensure that this never happens again. 

However, the way we go about doing this is so different. Indian companies tend to ensure that they hire no one who is likely to do this ever again. 

Western companies change their processes such that no one can do it ever again. 

One tightens the process but keeps the talent tap open. The other closes the talent tap but keeps internal processes open. 

They are both valid ways. In one, every employee becomes suspect and has to go through greater scrutiny and compliance. In the other, every employee is trusted, but it becomes harder to become an employee. The company's talent pool contracts. 

What would you like to do? Why?