It is not unusual for the current senior management of a firm to struggle to fathom the thinking behind some of the actions of its previous managers unless a decent audit trail of decisions made and the rationale behind them is maintained. In many cases, the records are somewhere in the firm’s systems but are simply not able to be found due to the fragmentation of information. This can often lead to incoming senior managers who uncover past regulatory issues struggling to identify what, if any, disclosures had previously been made to regulatory bodies such as the Financial Conduct Authority (FCA) and the Information Commissioner’s Office (ICO).
Poor recordkeeping hinders the handover process from a departing senior manager to an incoming senior manager.
This should not just be a concern for firms subject to regulatory obligations, as a proper handover, which provides an incoming senior manager with a good understanding of where things stand in their new department is important for the efficient running of any firm.
CCL has been assisting firms to meet their regulatory responsibilities for over 30 years and has seen many changes in the senior management of its clients during this time. Indeed, in many cases we are the only constant witness of the client’s evolution. Where these changes in senior management are accompanied by poor record keeping, the potential for the loss of corporate memory to lead to problems for the firm is significant.
How CCL CORE can help
CCL CORE, as well as providing a software solution for many important compliance needs including policy promulgation, attestation, compliance monitoring and reporting also provides a way to record and report any matters of importance to a firm’s senior management including incident management and regulatory liaison. In this way CCL CORE enables firms to maintain their corporate memory in an efficient and effective manner throughout the firm’s lifetime.
Request a demo to find out how CCL CORE will help your business manage the risk of loss of corporate memory