Sourcing and Procurement
Ensuring data privacy in contract management: A comprehensive guide
In today’s world, where data is one of the main drivers in virtually every sector, data privacy and security solutions are of the utmost importance, especially when it comes to navigating different risks in contract management. Different regulations like the EU's General Data Protection Regulation (GDPR), the USA's California Consumer Privacy Act (CCPA), Brazil’s General Data Protection Law, and Canada's Personal Information Protection and Electronic Documents Act (PIPEDA) are some of the leading guidelines regarding handling personal data and navigating the intricate landscape of data privacy.
When it comes to handling contractual agreements and contract management processes within the modern business landscape, these regulations can act as comprehensive guides, helping businesses navigate data privacy-related risks in contract management. Given that contract management professionals have to handle sensitive data, proprietary information, clauses, and other details, focusing on data security solutions is crucial not only to avoid regulatory fines but also to safeguard your business assets and reputation.
Ensuring compliance data privacy in contract management solutions
As contract management solutions continue to help businesses streamline contract workflows and enhance contract lifecycle efficiency, they also have to become the tools to ensure data security and privacy when dealing with increasingly popular digital contracts. Here are some ways you can ensure data privacy compliance when using a contract management solution:
Technology Integration
One of the biggest benefits of contract management solutions is technology integration in contract management processes. This not only enables data encryption – one of the most fundamental data security measures – but can also help contract management professionals leverage AI-based tools to locate and sort sensitive data, simplify data import analysis, and implement intelligent data redaction.
Access controls for role-based security
Advanced access controls within contract management solutions can help you implement role-based security access controls to ensure only authorised personnel can access or modify contracts, mitigating the risk of unauthorised data access or contract modifications.
Robust data management processes
Automated data workflows within contract management processes can help you set rules when it comes to mapping data flows, understanding data processing activities, ensuring data accuracy, and implementing overall robust data management processes.
Data audit trails
Contract management solutions can help you maintain detailed data audit trails – logging every action and change within the contract along with the corresponding user – for enhanced transparency, accountability, and security in contract management. These audit records can help you quickly identify suspicious activity and respond to any security incidents to maintain contract integrity.
Data privacy compliance
Making sure you choose a contract management solution that complies with relevant data privacy regulations ensures your contract management processes also comply with these regulations without having to invest significant time and resources to ensure compliance. You can also work with data probation officers (DPOs) to ensure your data privacy solutions are data privacy compliant.
Secure cloud hosting
Cloud-based contract management solutions have become the norm. So, selecting a reputable, secure cloud hosting provider is imperative to ensure robust data security measures – including, but not limited to, data encryption, redundancies, and physical data centre security.
Regular software updates
With ever-evolving cybersecurity threats, outdated software is extremely vulnerable to security breaches. Regular software updates from your contract management solution vendor – including security patches – can help you ensure updated data security measures are in place.
User training and awareness
The user – or human factor – is often one of the weakest links when it comes to data privacy compliance. You can mitigate this risk with comprehensive user training and a culture of data security awareness to ensure human error or negligence does not lead to an internal data breach.
Data backups and redundancies
Despite your best efforts, accidents can happen – leading to data loss. You can safeguard your contracts with the help of automatic data backups and maintaining data redundancies at different locations to ensure your contract data remains accessible in the face of unexpected events.
Third-party integrations
Third-party integrations can open your contract management processes to data vulnerabilities. You need to be diligent about their security standards and undertake a thorough risk assessment before sharing contract data with any external tools.
Vendor security assessment
Before selecting the contract management solution, be sure to conduct a thorough vendor security assessment, investigating their data handling and incident response protocols, security certifications, and data security standards. Make sure they align with your business and can support your contract lifecycle requirements.
How can Infosys BPM help?
Selecting the right contract management solution can be the key to ensuring data privacy in your contract management processes. Infosys BPM contract management services can help you leverage next-gen AI and NLP tools for smarter contract management while ensuring data security and privacy compliance, risk mitigation at the process level, and overall enhanced contract lifecycle management for improved contract compliance.
