Entity management, risk management, and compliance management are not corporate practices that people think about when forecasting revenue and profitability. However, there’s more profit to be made through legal operations than you may think.
A corporate compliance program helps organizations adhere to the laws and regulations of the land. In-house legal staff and compliance managers are responsible for enforcing compliance protocols that are designed to protect the interests of the corporation.
Here’s how the people responsible for managing corporate compliance programs can actually improve your organization’s bottom line and boost productivity.
Who are the compliance managers?
As many as 60% of corporations have an in-house Chief Compliance Officer and a team of compliance managers that report to the CCO. Additionally, most organizations have a Chief Legal Officer and a team of paralegals who help manage legal records for the corporation. Some companies are fortunate enough to have both departments operating in-house.
It’s these teams of hard-working professionals who protect the legal and financial interests of the corporate entity. Given the right resources and support from the global entity, these professionals can make their own contributions to the corporation’s bottom line.
How do compliance managers protect corporate interests?
Compliance managers maintain diligent records that document all the different elements of the corporate compliance program. These include things like:
Documented policies and procedures
Proper training protocols
Whistleblower protection programs
Minute book management practices
Auditing and reporting policies
Compliance enforcement protocols
Non-compliance investigative procedures
Compliance managers and paralegal staff often use legal entity management technology to meticulously compartmentalize all legal and compliance records. These platforms are intuitive, helping compliance and legal managers save valuable working time while completing all clerical and administrative compliance tasks.
Why use entity management to maintain compliance?
Entity management software helps your legal and compliance teams follow federal regulations like the Corporate Transparency Act. The purpose of these federally regulated legislative policies is to enforce corporate compliance and crack down on white collar crimes.
Globally, corporate compliance requirements ensure transparency and accountability is upheld by legal entities that operate in multiple jurisdictions. That’s why it’s so important to give your compliance managers the resources they need to be as detailed and thorough with corporate recordkeeping as possible.
Entity management software provides a single source of truth for all corporate entity data and minute book documentation. If federal regulators request an audit of your corporate data, your compliance managers can open the entity management platform and provide instant answers to any pressing questions from regulators.
Additionally, entity management software like MinuteBox has a built-in compliance module. The module helps your legal and compliance teams monitor organizational charts, calendars, workflows, and other templates for any errors, statutory non-compliance, and date-based compliance tasks. These automated workflows help your organization follow the jurisdictional letter of the law so that you always remain in compliance.
How compliance managers support corporate profitability
Now that you understand how compliance and legal managers operate, how does that translate into an impact on the corporation’s bottom line? Here are several ways that your legal and compliance teams directly impact corporate profitability.
Reduce risks and costs of cybersecurity breaches
Creating a single source of truth for your corporate compliance program allows your team to monitor any risks of non-compliance. Your compliance managers can identify and squash any internal operational problems that risk violating compliance policies. This can even extend to external-facing operations when dealing with customers or vendors.
Additionally, a compliance program includes cybersecurity measures to protect sensitive corporate data. Entity management software like MinuteBox is protected by biometric and hardware key authentication solutions, protecting all sensitive data from anyone without authorized access to the platform. This approach helps compliance managers mitigate any cybersecurity risks, such as hacking or malware that could compromise corporate security.
Minimize non-compliance financial penalties
Companies that violate compliance laws are subjected to significant penalties from regulators. In some cases, these penalties can amount to tens of millions in fines that must be paid to the federal or provincial/state governments.
In extreme cases, violations of compliance protocols can result in jail time for senior executives of the corporation. The ongoing saga with FTX Founder Sam Bankman-Fried is a stark warning for other companies to respectfully follow compliance protocols. Bankman-Fried is currently facing multiple charges of fraud and conspiracy to misappropriate billions of dollars in FTX customer and investor money.
Maintaining a rigid compliance program allows your compliance managers to minimize the risk of incurring similar extreme penalties. By enforcing compliance policies, your compliance and legal teams can potentially save millions of dollars in operating expenses.
Strengthen your corporate reputation
Finally, by enforcing a corporate compliance program, legal and compliance managers reinforce the standing brand reputation of your corporation. Customers and vendor partners will choose to do more with your corporation if they can trust that your organization respects compliance laws.
By maintaining this responsible reputation, your corporation can create new business opportunities that bolster revenues and increase profitability. Reputation is everything in business, and your compliance managers will protect that reputation from crumbling within.
Are you ready to transform your legal and compliance teams into departments that directly contribute corporate profitability? Join the MinuteBox revolution and use your entity management platform to enforce compliance and maximize profits.