Does Contract Management Solution Really Enhance Contract Data Security?
Contracts are vital to every business’s operations. However, that also means they contain private information that can cause significant damage if it falls into the wrong hands. Contract management solutions enhance contract data security, which is vital to avoid data and financial loss.
Importance of Contract Security
Contract security is a set of systems and practices that a business enacts to ensure their sensitive information is safe. An efficient security system will only permit access to individuals who need it to perform their jobs.
While many companies go to great lengths to secure their inboxes and other private platforms, they fail to invest the same security in their contracts. However, contract security is equally important as the security of any other internal resource.
Common Contract Security Risks
Unauthorized access is a common contract security risk. This occurs when an individual gains access to a contract without permission. Unauthorized access can result in the theft or alteration of sensitive information, which can lead to financial loss or reputational damage.
Cyberattacks are a significant threat to contract security. They can take many forms, including phishing, malware and ransomware attacks. Cyberattacks can result in the theft, deletion, or modification of contracts, leading to significant financial and reputational damage.
Data breaches occur when sensitive information is accessed by an unauthorized party. This can be due to a cyberattack, human error, or other security vulnerabilities. Data breaches can result in the theft or exposure of sensitive information, leading to financial loss or reputational damage.
Incomplete or Inaccurate Information
Incomplete or inaccurate information in a contract can lead to misunderstandings, disputes and legal issues. This can occur due to human error, miscommunication, or lack of oversight. Incomplete or inaccurate information can result in financial loss or legal liability.
Contract duplication occurs when multiple versions of a contract exist. This can result in confusion, conflicting information and legal disputes. Contract duplication can lead to financial loss or legal liability.
Failure to Comply with Regulations
Failure to comply with regulations can result in legal liability, fines and reputational damage. Regulations may include data privacy laws, industry-specific regulations and contractual obligations. Failure to comply with these regulations can result in significant financial and legal consequences.
Consequences of data theft or loss
When your contractual agreements are left insecure, people with malicious intent have access to your private information. A skilled hacker or even an upset employee can view, use, and change your data without your consent. Companies that lack strong security are susceptible to data leaks, financial losses, legal issues, and identity theft. Therefore, implementing an effective contract security system is essential.
How to improve contract data security?
Contract management solutions provide your business with the highest level of security possible. Things such as employee payment, timely service delivery, and partnerships rely on your agreement success rate. However, leaving your contracts with little to no protection opens them up to internal and external threats that can decrease your success levels.
5 Security Benefits of Contract Management Solutions
Contract management solutions are pivotal in streamlining and securing an organization’s contractual processes. They bring a suite of security benefits that can profoundly enhance the protection of sensitive information and the integrity of contractual agreements. Let’s explore the key ways in which these solutions bolster organizational security.
Here are five key ways contract management solutions help organizations stay protected:
1. Password-protected cloud-based contract repository
Cloud-based infrastructure gives your team leaders the ability to make security changes easily and monitor agreements on the platform. Additionally, restricting access to the repository with a password ensures that it can only be accessed by those who are granted permissions.
The cloud-based storage feature of contract management security also guarantees that you will not lose your data if you forget to save or have hardware issues.
2. Encrypted intake forms
Impenetrable encryption prevents unauthorized individuals from viewing your confidential agreement data. Client intake forms contain personal information that can be harmful if accessed by malicious individuals. Your contract management security should encrypt all data at rest and in transit. That way, it is still secure when being sent between customers and partners. With encrypted intake forms, your clients.
3. Configurable role and rank-based permissions
Many business owners assume that they only need protection from external threats but fail to realize they also need to account for internal threats.
A contract management security system gives you the ability to configure roles within the platform, meaning only individuals with permission can access specific data. You can set user permissions by department, role, contract types, and more, ensuring that your confidential data doesn’t fall into the wrong hands.
4. Built-in e-signatures
An electronic signature uses encryption to verify whether or not the signature is authentic. Implementing e-signatures is a simple way to boost security and keep track of your contract processes.
Security systems in contract management with integrated e-signatures capture data such as the date and time of signature, IP address, machine identifiers, and more. Electronic signatures are the most secure method for contract approval. Without them, your company is at risk of falling victim to fraud and theft.
5. Keep your contracts on a single platform
Your business probably has existing solutions such as cloud file storage and eSignatures. These solutions have already been configured to meet your security needs and hold essential files. The best contract management software will let you integrate your previously implemented platforms into its application, minimizing the need to upload your information to external programs or abandon your current solutions.
Additionally, solution integration speeds up CMS implementation and allows you to keep your existing security policies concerning document retention and access.
Final Thoughts on Security Systems in Contract Management. Why is it worth switching to a secure contract repository?
A physical repository of paper contracts leaves your information vulnerable. On the other hand, CMS software with a secure contract repository will keep all of your information from malicious individuals.
When you make the switch to a secure contract management platform, your company will benefit from the features that prevent breaches, financial losses, information theft, and many other serious threats. The platform will give you greater peace of mind knowing that your contract data is secure.