Tax & Accounting Blog

Tackling Compliance Risk

Trust Tax June 13, 2011

Changes in the financial regulatory climate over the past few years are causing wealth management organizations to reassess their vulnerabilities and update their strategies for mitigating compliance risk. No longer is audit readiness relegated to the back office or to the month preceding the annual auditor visit. Transparency is required throughout all levels and functions in an organization throughout the year.

Corporate fiduciaries must comply with a diverse and complex set of federal, state and local laws and regulations affecting all areas of their responsibility – trusts, securities, banking, taxes, contracts and consumer protection.  The list continues to expand.  To remain in compliance, institutions must establish a risk management program that ensures effective control and monitoring of their activities, and be able to demonstrate that internal processes adhere to established management policies or face significant penalties.

Once considered a nice-to-have solution to promote efficiency in a paperless office, integrated workflow and document management systems have jumped up the priority list.  Workflow systems, combined with document imaging and scanning, provide a method for automating labor intensive, complex processes.  A system doesn’t change your procedures, instead it makes them easier to execute by insuring that everyone uses the same process and documents no matter where they are located.  An effective wealth management workflow system helps an institution manage risk while reducing operating costs.