Human Process Management for Increased Disclosure Requirements

In the current regulatory environment I expect we’ll see more and more calls for increased disclosure requirements for various internal processes. One the latest is SEC’s Release 33-9052 which sets forth proposed amendments to Item 401 of Regulation S-K that will require disclosure of “qualifications, attribute or skills” that qualify a candidate for service in a governance capacity for a particular company, based on that company’s business and structure.

I was reading an interesting post on “Best Practices for Conducting Background Checks on Board of Director and Executive Officer Candidates” which provides a nice guideline on how to do background checks and possible red flags that companies should be on the alert for.  The  guideline is useful, but as a chief compliance officer, or member of the audit committee, how would you know that best practices were followed?

One way would be to make sure that all the documents collected regarding a candidate were stored and accessible. That would at least provide some material, but of course the process used to obtain the information would be completely lost. Another would be to have your IT department build an application, but even using tools like a BPM suite – that would take a while.

Finally you could use an HPM solution like ActionBase – take the guidelines, mark them up as an ActionDoc, and then use ActionMail to manage the process. You could this up and running almost immediately (using guidelines like those in the post, and creation of a few ActionMail templates) – and you would have a simple solution to the problem. Doing it this way provides both the access to the documents, and the process (and of course all the relevant status and historical reports).


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