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In the previous entries in this series, we've taken a deep dive into the first three steps in the entity compliance workflow: entity formation, regulatory business license compliance and annual report requirements. In this article, we'll examine the fourth step in the entity data compliance workflow: entity management.
Sound entity management practices help minimize the risk of costly errors occurring, while also creating the necessary conditions for an entity to operate smoothly during its lifecycle.
It’s ideal to establish these best practices when an entity is formed but these steps can also be implemented for an existing entity. Data must be extracted from governing documents in order to comply with jurisdictional regulations. This data also guides the larger decision-making process around how the entity is run and operated in each jurisdiction, and which individuals or entities are granted the power to make decisions on behalf of the new entity.
Entity management continues to grow in importance for compliance and governance professionals, given that the aims of both fields rest squarely on maintaining accurate and dynamic corporate records. It has become a strategic function within modern organizations that helps support not only compliance and governance but also collaboration.
Entity management, when practiced effectively, helps organizations do the following:
There are several key elements to maintaining sound entity management principles: accuracy, organization, accessibility and security, documentation and reporting and maintenance. Let's take a closer look into how each of these elements work.
Managing data in modern organizations is no small task, given the scope of the job and the ever-changing nature of information and corporate and regulatory requirements. Rigorously accurate corporate records are a mandate, yet keeping everything fully up-to-date is often a time-consuming challenge.
Many organizations look to entity managed services solutions to help maximize efficiency and accuracy, lower costs and help enhance the internal legal department's role as a governance advisor.
The right solution can transform an internal team from "data inputters" to full-fledged "data managers" by providing four key things:
It's important to remember that corporate records are key strategic assets. In order to provide full value, they must be both accurate and accessible to all stakeholders within an organization.
Real-time management of entity data helps ensure that these mandates are met. By putting the proper framework in place, organizational leaders can rest assured that key corporate data is fully accurate and readily accessible.
Entity regulatory compliance is a complex subject and one that is always evolving. Full mastery of compliance data management, across the entire lifecycle, necessitates having a keen understanding of all four steps within the entity compliance workflow.
To learn more about how CT can help you navigate your entity management needs, contact a CT Service Representative or call (844) 400-9804.
View the Mastering Entity Data Compliance (Infographic).
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