In the rapidly evolving corporate landscape, effective entity management has become a crucial aspect of governance, compliance, and overall operational success. Surprisingly, nearly 50% of companies still rely on traditional spreadsheets to oversee auditing and controls, despite the complexities involved. As organizations grow in scale and complexity, the need to streamline entity management becomes increasingly apparent.
Legal entity management (LEM) encompasses various departments, including governance, compliance, tax, and legal teams, along with key stakeholders like the general counsel and corporate secretary.
Now, organizations are increasingly focusing on legal entity management as a critical aspect of their operations. Most organizations lack solid and consistent LEM policies and practices, revealing a gap in effective management. While technology is widely used to support LEM, 73% of organizations express dissatisfaction or neutrality with the available options. LEM teams face challenges due to competing priorities and lack of bandwidth, affecting their efficiency. Organizations with good LEM policies and practices tend to achieve better business outcomes, emphasizing the importance of effective entity management.
The problems in Entity Management are corporate secretaries and paralegals often face challenges accessing vital documents in real-time due to heavy encryption and unique data points. Sophisticated systems can offer faster access to critical data, supporting advisory roles. And assigning responsibilities for maintaining specific pieces of corporate data becomes crucial as different people and departments handle entity information. Tailoring these duties to fit unique operating needs is essential for each organization.
Leading entity management and governance systems provide robustness and flexibility to meet ever-changing internal and external requirements. These dynamic solutions supersede static, one-size-fits-all software, enabling organizations to adapt and thrive in a dynamic business environment.