Rethinking legal entity management

13 October, 2022

All

With the focus on digitalization and the development of legal functions in multinational companies, a person responsible for entity management needs to revisit the way of working with data collection.

In discussion with our customers, we notice a focus in the following areas.

  1. A need to increase the quality of the entity management data
  2. Secure that the data collected is relevant for the group and its different functions
  3. Being able to push relevant data to different parts of the group in a relevant format
  4. Increase the visibility of the data in reports and org charts

Increase quality

One of the challenges that a person responsible for legal entity management faces is to secure that data is collected from the right source and that the data gathering is done on time. The increased digitalization of different compliance areas implies that entity data will be used in regulatory compliance processes. Thus the importance that any data gathered is correct is much higher than before. Since most of the data needed are not found in other systems, a reporting structure with local reporters that feed data daily is used in most cases. The reporting must be supported by a user-friendly solution that makes it possible to establish workflows where tasks are pushed to reporters with automatic reminders.

Secure the data collected is relevant

With increased digitalization within headquarter functions, entity data is needed in different processes much more than before. Therefore, the need to gather other data points (including documents) than usually done in an entity data management process is high on the agenda. This implies that a person responsible for entity management must work on a solution that makes it possible to customize what data points and documents that should be gathered and that it is possible to establish a logical reporting collective for this gathering that mirrors the organizational setup. Therefore, a need to set up different processes for gathering certain data is often at hand. This implies that a solution should be able to support different ways of collecting the data using customized questionnaires and workflows with varying collectives of reporters.

Being able to push data to different parts of the group

Entity data is required both on headquarters function and entity levels. Many group stakeholders often use some of the basic entity data, but some are only relevant for one or several stakeholders. Furthermore, the data need to be presented to these functions and entities in a relevant format. This implies that any solution used for entity management should be able to push data to relevant stakeholders in the format the stakeholders require. A part of this is to have a very advanced access system where relevant stakeholders can view data, and that data could be pushed through APIs to other solutions used by these stakeholders.

Increase the visibility of the data

Since many stakeholders use the data in the system, it is important that it can be found and presented clearly. It should be easy to work with historical data and filter relevant information. A particular area in this respect is to have a solution that makes the ownership structure visible in org charts, and those different stakeholders can use these charts.

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