Global entity management is essential for businesses to function effectively and sourcing a good software supplier to help you with this could be the best option for many organisations. But what exactly is global entity management, and could you really benefit from using it? We will answer this and more in this essential guide.
What is global entity management?
Entity management refers to the process a company uses to manage the essential information and documents of its various entities. Using an effective entity management system means that the organisation’s system of handling potentially sensitive data is orderly, and all entities can be easily tracked, whether that is partnerships, trusts or corporations.
All organisations can benefit from entity management, especially global companies. Technology has developed significantly and is not slowing down, meaning that it’s easier than ever for organisations to increase their reach and launch global entities, boosting profits. But for all the benefits that come with this, there are also some potential problems, especially because of the complicated international regulations and new data that must be handled. Therefore, global entity management is important.
Global entity management involves the way a business is governed with a particular focus on the legal department. It ensures that the company is compliant with its practices and that administrative duties are carried out appropriately, from financial data to reports and documents.
If you’re not already convinced, read on. Below, we will list the reasons why you should be using global entity management.
Global entity management ensures compliance
A global entity management system will ensure that your business stays compliant with all regulations. These can change depending on the countries that you operate in, which makes it very difficult to keep up with. International, national, and local requirements all need to be considered if your company and its entities are to keep a strong reputation at all times. Keeping all your entities in line can be especially challenging, particularly when growing your international standing and building more and more documents.
Tracking whether you’re adhering to several jurisdictional rules is not easy or quick, but a global entity management system ensures that it is kept as simple as possible. When outsourcing this, there is a team of expert professionals who are dedicated to maintaining your entity management system and can focus on ensuring you are always compliant.
This can save you from potential prosecution and loss of reputation that can easily occur by the accidental breaking of legislation. With this peace of mind that this is avoided, you can focus on your organisation and boost productivity.
It centralises data
An entity management system consists of various documents and records that show what entities are registered to your organisation. This can include lists of directors, officers, and ownership records. Depending on the size of your organisation, this could be a huge amount of data that can be difficult to organise. This is a problem because these documents need to be easily accessible to various stakeholders.
Opting for outsourced global entity management can create a simplified version of this, keeping all the information in one centralised, digitalised format that is user-friendly. This erases any potential issues associated with accessibility while increasing the transparency and ease of operations of any organisation. This encourages and improves teamwork when the entirety of an organisation has access to the same, up-to-date documentation, offering a single source of truth for limited disputes.
It protects data
Because of this increased amount of transparency, having data digitalised on one platform means that data is much better protected. An outsourced global entity management system ensures that the data is less likely to get lost, stolen, damaged or corrupted by using state-of-the-art technology that ensures full protection. It can create regular backups of documentation so that disaster recovery is streamlined, and risks are mitigated before they occur.
This protects the integrity of sensitive data against any problems that can arise when confidential information gets into the wrong hands. This is, of course, closely related to everything we mentioned above about ensuring compliance with international data handling and protection laws.
Global entity management: The takeaway
Global entity management ensures that all entities can engage in compliant and streamlined practices. This maximises your potential to grow and expand more with a simplified process.
Alphatec’s software solutions deliver opportunities to manage processes, information, documents, images, and compliance. The applications provide a platform to organise data, and manage insurance, claims, legal cases, incidents, works orders and more. Data is trackable and reporting and business intelligence integration means that insight can be derived from data easily. Our Avers software is multi-language and multi-currency so that launching global entities can be achieved easily.