How internal processes and good records management can play a critical role in lifting the professional reputation of the insolvency industry.
Any professional who appears to be making a living out of others’ distress will sooner or later have to confront the possibility of image issues. Simply put, it comes with the territory. It’s no coincidence that lawyers, journalists and used car salespeople are frequently cited as the most unpopular of all professions.
Insolvency professionals collectively comprise an industry that exists because being unable to pay debts is a constant concern that hangs over the heads of all business owners.
When investigating and reporting on voluntary administrations, liquidations and receiverships is your bread and butter, you are likely going to have an image problem in the eyes of some. Even if you are simply doing your job – an important job that is an essential mechanism in broad scheme of business.
Given that, insolvency firms would do well to avoid further potential reputational harm by failing to fulfill their compliance obligations.
Records management and the realities of compliance
The fact of the matter is that the majority of insolvency firms can struggle on some level with information management, including the secure storage of records, and meeting their compliance obligations.
In June 2018 ASIC’s Report 573: Registered liquidators’ compliance with
lodgement and publication requirements (1), which examined approximately 26,000 insolvency administrations between December 2013 and June 2017, found that 70% of Australian registered liquidators reviewed had at least one instance of non-lodgement during that period and were therefore not fully compliant with their obligations.
ASIC’s report also noted that no correlation exists between the size and nature of a registered liquidator’s firm and non-compliance, meaning it’s not just insolvency firms at the big end of town that are at risk of failing on compliance. Nor is it just smaller firms with fewer resources. Insolvency firms large and small can both struggle with information management and the increasing burden of red tape.
While one instance of non-compliance can seem innocuous, some, including ASIC Commissioner John Price, suggest that instances of compliance failure can be symptomatic of deeper problems in insolvency firms. Given that, the impetus for investing in business solutions that ease the burden of compliance has never been clearer.
Information management key to changing perceptions
Internal processes that enable more efficient and more accurate records management, coupled with secure storage of records, can better position insolvency firms to meet their compliance obligations. And in doing so they can help lift the professional reputation of both the firm and the insolvency industry as a whole by demonstrating credibility and accountability.
The concise archiving and managing of sensitive documents may sound like a straightforward enough process. But when one considers just how many individual documents are involved in even smaller insolvency cases and the rising burden of compliance, the enormity of the task can be daunting.
This is where nimble information management systems can lend a hand by doing the grunt work on records management and retrieval while reducing the risk of mis-managing information.
At Compu-Stor, we help insolvency firms address the challenges of records management with our Complete Information Management Solution (CIMS). CIMS links electronic documents directly to the corresponding physical record and enables customers to easily search, locate and download the file they need. CIMS helps insolvency firms by giving them:
- ultimate control of their records;
- increased security of sensitive documents;
- a comprehensive information management system that is easy to use; and
- improvements in efficiency and productivity.
When you can rely on a robust information management system such as CIMS for the storage, retrieval, instant access and sharing of documents, the burden of compliance can be better managed through newfound efficiencies. Such an information system can allow insolvency firms to more smoothly coordinate workflow and collaboration, while also helping with onboarding of new clients.
Not only do intuitive information management systems allow for quick access to records, they also allow those records to be updated by multiple users in real time. Information management systems also make it quicker and easier to search, locate and retrieve electronic copies of records and to produce hard copies of those records as needed.
Transparent and concise archiving and records management plays an important role in promoting the professional reputation of the insolvency industry. While insolvency may have an image problem in the eyes of some, a well-developed information management system that offers secure storage and helps ease the burden of compliance can play a critical role in lifting the industry’s reputation.
Compu-Stor offers a robust information management solution that delivers insolvency firms efficient and time-sensitive access to information, allowing businesses and teams to organise, operate and preserve information more efficiently.
To find out more about our proprietary, in house developed, Complete Information Management Solution (CIMS) and our experience in providing records management solutions to the insolvency industry call us on 1300 559 778.
1: https://download.asic.gov.au/media/4765587/rep573-published-13-june-2018.pdf
