Companies today manage hundreds to thousands of contracts, and buried in contract language are business risks ready to surface in a crisis. At this volume, portfolio-wide visibility into contract data is your best defense. But for many organizations, this is daunting. Companies often lack the technology to analyze contracts at scale.
Today’s risks require better contract data insight, and the teams that can quickly evaluate contracts and extract data points can learn their obligations and reduce risk. This blog series will highlight three risks and show how contract management software can help you expose and eliminate them.
Risk Review: Data Privacy
Consider the growing complexities around data privacy regulations. Legal teams contend with mass reporting requirements–from GDPR to CCPR/CPRA and LGPD–spanning domestic and international borders. To mitigate damage from breaches or non-compliance, companies must improve contract language and generate response plans. But many are stuck: Without adequate technology, they can’t grasp notification obligations across thousands of contracts.
For global companies, cross-border data transfer scenarios further complicate things. For instance, the EU recently adopted modernized Standard Contractual Clauses (SCC) to regulate international data flow. At a minimum, legal teams need to update dozens to hundreds of existing data processing and transfer agreements.
Many will also review language to ensure compliance with storage and retention requirements, data minimization, data destruction, and confidentiality obligations. For this, one industry network reminds: “Legal practitioners can get better control with the help of AI tools by automating routine tasks and centralizing contract management.”
Problems loom for legal teams slowed by inefficient contracting. Fortunately, contract management software helps legal leaders navigate evolving regulations. As companies regularly audit and update contracts to keep them compliant, AI-powered contract management software enables this efficiency with features like full-text search and custom reporting on GDPR-specific terms. Check out this eBook to learn more about keeping contracts GDPR compliant.
We’ll be back next week with a risk review on pandemic-era contracts. Can’t wait? Download the full eBook, How to Expose (And Eliminate) Hidden Risks in Your Contracts With Contract Management Software today.
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