Every company’s situation is different, but nearly every organization must identify potential unclaimed property risks and liabilities to avoid damage to finances, resources and reputations. It can be difficult to conduct an assessment of your processes after every reporting cycle. However, if you’re not sure when the last review was performed, or if you know it’s been more than a year or two, holders should carve out time to complete an exposure assessment.
Having an inefficient process, neglecting to keep up with, or overlooking, changing legislation and personnel that are not experts with escheat responsibilities are just a few areas where a company can open themselves up to the risks of unclaimed property exposure which can lead to:
- Lost opportunities to find and reunite owners with their property
- Increased likelihood of audit
- Increased penalties/interest when escheat requirements are not being followed
- Excessive expenditures of time and money to resolve issues
- Negative public assessments
To avoid these issues and effectively manage data and legislative requirements, organizations must establish and execute smart policies and processes. There are a number of universal action steps that holders can take to decrease their exposure and achieve an efficient process.