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 through 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.

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

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.