Compliance in entity management is by no means a new concept. Entity regulation has only increased in the years following management scandals at Enron, WorldCom and, eventually, Lehman Brothers during the 2008 financial crisis. What comes to mind when a compliance officer thinks of increased regulation? The most likely answer is increasing layouts on hours for a department that does not intrinsically create revenue - an unfavorable outcome to report to executives.
The good news is that this can be avoided through modern best practices in entity management compliance. With these five strategies, compliance departments can begin to shape their increasing contributions to a thriving corporate culture.
Applying the Best Practices in Entity Management Compliance
Strategy #1: Increased Synergy Synergy is a word that is famously overused in business, yet it is truly a simple concept: using two separate agents to create a contribution that is greater than the sum of their individual efforts. How does this take place in entity management compliance? Entity management exists in multiple, discrete departments, each with a multitude of responsibilities that don't overlap very often. Entity management will involve data and documents from legal, human resources, accounting, information technology and finance departments, at minimum. To take this a step further, the documents tracked during entity management compose the lifeblood of a corporation. So, by having a better distribution and flow for these documents, the entire organization benefits. The name of the game here is compliance, and by using entity management technologies to increase synergy between compliance and any other given department, the corporation multiplies the non-negative benefits of a well-run compliance department. Strategy #2: Manage Risk The purpose of entity management is to mitigate risk. Each separate entity will isolate various elements of the corporation that would otherwise be unsuitable within the same organization. The compliance officer's duty is to ensure that their colleagues adhere to the regulations that apply to the corporate entity to which they are responsible. In order to do this, the compliance officer becomes responsible for understanding the organization of a vast cache of documents across and between entities. By using entity management technology, the job of organization becomes easier, and the officer may focus more on the practices of ensuring compliance that are solely within their purview. Just a few of the key tasks that the compliance officer is responsible for are:- Composing mandatory filings
- Knowing filing deadlines
- Being well-informed on regulations in all relevant jurisdictions
- Maintaining necessary operation licenses
Why Entity Management Compliance is Critical
The truth about compliance is that it is a somewhat thankless job if you do it right - the benefits are only apparent once a mistake has been made. In order to not only avoid this, but to create additional value across multiple departments, the right entity management software and practices must be adhered to. This not only benefits the corporation, but lowers the man hours and stress levels of those directly responsible for compliance. Blueprint OneWorld offers innovative, powerful solutions in entity management - solutions that truly empower the corporate secretary, legal and compliance departments. If you are interested in upgrading, switching or beginning with a new standard for your corporation, please call or email us.Media Highlights
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