SimonStapleton.com

4 Ways To Improve Your Global Entity Management Practices

Estimated reading time: 2 mins

When a company operates on a global scale and enjoys bigger profits, it also increases its risk. This risk comes from its compliance and governance practices that need to be fulfilled.

They fulfill this by hiring additional lawyers, risk managers, and compliance officers. Apart from that, global entity management can also be outsourced to a professional firm.

Whatever the case may be, there are always steps you can take to ensure that your risk is reduced and compliance is improved. Here are 4 practical steps you can take to improve this practice in your company.

Centralise Your Data

This is critical information that can’t be afforded to be dealt with haphazardly. You need to have one source where all data is collected and stored.

Your company will have many subsidiaries in different geographical locations and so data needs to be transparent to everyone from one single source.

This will also help you to produce high-quality data and retrieve it in no time to reduce risk.

Communicate Based On Data

Communication channels also need to be optimised so everyone can communicate and collaborate effectively. This is where the importance of an entity management system comes in.

Your company needs to have a proper system in place to centralise data and optimise all processes of the workflow. This will save the time of everyone involved in the business and it will leave less room for error.

Consolidate All Data

This will help you to generate whatever you need to improve your practice. For example, a company makes use of the data to make organisational charts.

This will be done regardless of jurisdiction so the global ownership will be shown. Doing so will guarantee that the hierarchy of the organisation is not tampered with.

Manually making organisational charts is not efficient as it leaves a significant margin of error and can harm your compliance and governance practices.

Find A New Way To Assign Directors And Officers

Your organisation will have to find a new way to approach this too. This is because directors and officers will be assigned to more than one of these entities.

A useful approach for this is to generate a master list. Then you can use that list to assign people in a legal entity as directors and officers for a specific entity. Of course, the roles can have variations across entities; they don’t have to be uniform.

This will save time as it will mean that a person can generate any report they want within a matter of a few minutes rather than days. In the long run, it will have a significant impact on mitigating risk.

Final Words

A global subsidiary management process is a long one but one that every company operating on a global scale needs to take. You will have to completely change the way your company works to make it better and optimised.

In the long run, the benefits will outweigh the costs and you will have an effective management system in place.

 

About the author /


Simon is a creative and passionate business leader dedicated to having fun in the pursuit of high performance and personal development. He is co-founder of Applied Change, a Business Change consultancy based in the UK. Simon is also an Ambassador for Gloucestershire business. Simon is an Associate Member of the Chartered Institute of Professional Development.

Post your comments

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Affiliate Promotion

simonstapleton.com is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com. Amazon, the Amazon logo, AmazonSupply, and the AmazonSupply logo are trademarks of Amazon.com, Inc. or its affiliates.

Polls

When answering Employee surveys, do you always answer completely honestly?

View Results

Loading ... Loading ...
My latest book: ACE Your Performance Appraisal$4.99 on
How Am I Doing?

Did this discussion solve your problem?

Then please rate this post or leave a comment.