Effective Risk Management

As the owner of Hotman Group, Cheri Hotman emphasizes the importance of keeping your business and client information safe. Cheri discusses the need for small businesses to be good stewards and protect what they have built. She highlights the significance of aligning regulatory practices with client needs rather than just following mandatory rules. Cheri advocates being proactive with regulatory compliance measures early on.

Identifying and Managing Small Business Risks

Creating a risk management plan within budget constraints is crucial for small enterprises. Cheri draws from her experience at Hotman Group to provide practical advice.

Regulatory Compliance Tips for RIAs

• Cheri points out that for registered investment advisors (RIAs), regulatory compliance is key to retaining client trust and avoiding data breaches.
• She recommends RIAs pick a compliance framework, clearly define requirements, and implement cybersecurity solutions early.
• Regular reviews of processes help take compliance efforts to the next level as regulations evolve.

In summary, Cheri emphasizes making regulatory risk management a priority for small businesses and RIAs. Doing so now saves significant time, money, and headaches down the road as the business grows. Her advice is to be proactive, start early, and keep a close eye on compliance efforts.

Fizen™ has developed Verify, a Regulatory Technology Compliance Automation Software that would serve this very purpose.

Verify is an out-of-the-box screening tool for workflow and customer identification programs. It automates checklists, APIs, and processes for regulatory compliance. Key features include:

• Adverse media and negative news searches
• Beneficial ownership reporting
• KYC and fraud prevention
• OFAC watchlist searches
• Customer due diligence and risk assessments
• Transaction monitoring

Summary

Cheri Hotman, owner of Hotman Group, emphasizes the importance of keeping your business and client information safe. Cheri discusses the need for businesses to be good stewards of their hard work. Drawing from her experience at Hotman Group, she highlights the significance of aligning regulatory practices with client needs.

It’s not just about following mandatory rules but also about tapping into regulatory guidelines to shield both your business and your clients. She’s all for businesses being proactive and getting on board with these measures early on, pointing out that as you grow, you’re going to bump into these regulations sooner or later.

Cheri’s got practical advice for businesses diving into the world of regulatory compliance. Pick a framework, spell out your requirements, and get those solutions in place.

And don’t forget the golden rule—keep an eye on things regularly to make sure you’re on track.