In today's business world, tech companies are proliferating, so are the challenges they face. As these organizations continue to expand their domestic and international operations, entity management becomes crucial to maintaining compliance and maximizing efficiency. This is where entity management automation can prove to be a game-changer.
Entity management software allows organizations to maintain accurate and up-to-date records of their legal entities, including subsidiaries, partnerships, and joint ventures, across different jurisdictions. In addition, it streamlines workflows and makes it easy for companies to handle complex regulatory requirements that often vary from one state to another.
Let's take a look at some common challenges that these tech companies encounter:
Devices: Numerous firms are opting to permit their employees to utilize their devices while working on cutting costs and avoiding the need for separate devices for personal and work-related tasks. This is where it becomes imperative to ensure the security compliance of BYOD (Bring Your Own Device) policies to protect sensitive data. Skilled IT personnel must be able to govern the data on such devices.
GDPR: The General Data Protection Regulation introduced by the EU marks a significant legislative shift in how businesses manage data. It also applies to American enterprises, regardless of location, if they handle information about EU citizens. Noncompliance with GDPR can attract severe penalties amounting to millions of dollars – not just limited to customers, employees, and visitors. To avoid such punitive consequences, it is crucial to have GDPR-compliant measures, like ensuring data is protected, accessible to authorized personnel only and deleted when no longer needed.
Software Updates: To gain control of your data, hackers will exploit every possible vulnerability. If you suffer a major data breach, any fines levied may increase due to negligence arising from technical oversight. It is critical to safeguard your IT systems against computer exploits or glitches that cybercriminals can exploit. IT departments must respect regular software updates.
Third-Party Vendors: A couple of years ago, you might have noticed Facebook being grilled during Senate hearings. The issue stems from their previous practice of allowing data sharing with third-party entities, which is susceptible to IT compliance violations under recent regulations like GDPR. To avoid this, your organization must have suitable protocols in place for sharing data. For example, share essential data and only with authorized personnel. Any personal data sharing should require explicit consent from the involved parties. Additionally, encrypt all personal data and never allow it to be communicated through vulnerable platforms like email.
IoT: We live in a world that is becoming more connected daily; even our coffee machines can access the internet. However, organizations must examine these devices to comply with regulations to ensure they don't jeopardize their IT compliance policy. Consequently, devices that gather data must be evaluated to ensure compliance with current laws. This entails analyzing how the data is saved, who can access it, and determining if every party has consented to collect it. Take necessary action to guarantee that your company has an effective IoT policy.
US tech companies can benefit immensely from entity management automation by gaining access to several advantages. Some of these benefits are:
Simplified compliance: Tech companies that operate across different jurisdictions in the US must comply with various laws and regulations. The software automates the process of tracking and updating regulations across other jurisdictions, thus reducing the risk of compliance errors.
Saves time and reduces errors: Manually managing legal entities, especially for large organizations, is a daunting task. Entity management automation software simplifies the process, saving time and reducing the risk of errors.
Improved transparency: Access to accurate and updated data on entities makes decision-making streamlined and transparent.
Enhanced security: Entity management automation keeps all data secure and minimizes the risk of unauthorized access.
Improved collaboration: The software allows IT teams to collaborate with different departments in a company and share data in real time, improving communication and workflow.
Increased efficiency: By automating workflows, reducing the risk of errors, and improving collaboration, the software ultimately increases efficiency across the organization.
In conclusion, entity management automation has become a necessity for tech companies in the US, not only to maintain compliance but also to improve efficiency, increase transparency, and enhance collaboration. Therefore, investing in a good entity management solution can streamline operations and provide a competitive advantage in the tech sector.
Traact's entity management can help you stay compliant without spending too many hours manually managing entities. Additionally, it reduces legal spending by approximately 23%. The automated ecosystem expedites the legal processes and, at the same time, reduces errors that might occur while manually managing tasks.
Get in touch for a free demo to understand how Traact can automate your entity management efficiently.