Contract management security: risks, mistakes and solutions

Contract process
June 9, 2023
6
min
Concerned about contract management security? You should be. Discover the best way to secure contracts in this guide.

The security of your contracts should never be an afterthought. With 422 million data breach victims in 2022 alone, it’s never been more important for businesses to take concrete steps to ensure that information in their contracts is as secure as it can be. 

This ultimate guide to contract management security tells you how and why you should make security a priority in 2023 - if you haven’t already. 

If you want to speak to one of our specialists about how Juro can secure your contracts, hit the button below. Otherwise, keep reading to find out what contract management security should (and shouldn't) look like for your business.

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What is contract management security?

Contract management security describes the steps and procedures put in place by a business to protect their legal documents. This can be understood in a few ways. 

Contract management security could involve restricting access to contracts to make sure only authorized personnel can view them. It could also mean finding ways to ensure the legitimacy of a signature on a contract, or automating workflows so that employees are forced to follow strict processes. 

At a more technical level, contract management security is about the protocols in place to protect the data within your contracts. It’s about how safe your storage solution is and how that data is stored. Don’t worry, though. We’ll cover this in a lot more detail shortly to bring you up to speed. 

Why does security matter when it comes to contract management?

Your contracts are a hive of confidential information. They capture everything from your customers’ financial data to your intellectual property and the employee’s salaries. If mishandled, this information could cause considerable harm, both to your company and the data subjects.  

Yet, most companies are still taking a messy, disorganized approach to contract storage. Let’s look at some of the most common contract management mistakes businesses are making when it comes to security now. 

Common contract management security mistakes

Despite the crucial role that contracts play, many businesses fall into traps that compromise the security of their contracts. Let’s cover these common mistakes briefly now.

1. Relying on physical documents

Physical documents are easy to misplace, difficult to track, and susceptible to damage. They also make access control a challenge, potentially exposing sensitive information to unauthorized individuals. 

Yet, so many businesses are still reluctant to move towards a paperless office. Instead, they keep confidential contracts in office filing cabinets where they’re vulnerable to the risks we just described. 

2. Using generalist storage solutions

Shared drives are certainly an improvement on physical document storage, but businesses that use general-purpose digital storage solutions like Google Drive or Dropbox are still not storing contracts as securely as they could. 

This is because generalist storage solutions often lack the security measures necessary for secure contract management, like advanced access controls and detailed audit trails. 

3. Inadequate access controls

Without a robust permissions system in place, it’s hard to control who has access to sensitive contractual data

Manually updating the permissions for individual files quickly becomes time-consuming, and there’s no guarantee that they’ll be set up properly either. The other option is to lock all documents and restrict access to the contract owners, but this creates friction as it blocks access for authorized parties too. 

Only with a secure contract management system like Juro can you automate a level of security that works for your business contracts

4. Neglecting Regular Security Audits

Regular audits are essential to uncover potential vulnerabilities and verify that all security measures are working as intended. Unfortunately, most organizations neglect these audits and only begin to their security procedures when it’s too late. At this point, the damage is already done. 

How to secure your contracts in 2023

The best and easiest way to secure your contracts in 2023 is to adopt a contract management platform that prioritizes security for you, like Juro. 

Here’s what you should look for when evaluating CLM vendors based on security:

  • Granular permission controls. Juro allows for detailed role-based access control, meaning you can determine who can see and do what with each contract at a granular level.
  • Detailed audit trails. Every change made to a contract is recorded, providing complete visibility into who did what and when, facilitating traceability and accountability.
  • Compliance with international standards. Juro's systems and processes are designed to comply with international standards like GDPR, providing assurances on data protection.
  • Legally binding electronic signatures. Juro's native eSignature solution complies with the requirements of UETA, the ESIGN Act, eIDAS, and other relevant legislation.

Juro is built with security at its core and is trusted by over 6000 companies that already power their contracts with us. 

We selected Juro for its simplicity, ease of integration and security - Khalid Al Turki, Senior Strategy and Ops Analyst, Tamara
We’ve sent hundreds of contracts to investors and shareholders, almost all through Juro. Counterparties really appreciate the fact that you can view and sign a contract easily and securely from your phone - Ryan Zahrai, Head of Legal, Eucalyptus
In a few clicks, the contracts are saved in one place, and we derisk in terms of data management and keeping track of our legal documents. When you’re pulling together a data room for a fundraise, this is invaluable - Clio Anderson Garwood, Senior Legal Counsel, Paddle

Want enterprise-grade protection for your contracts?

Juro doesn’t compromise on security, compliance and validity. Juro’s contract management system offers enterprise-grade protection for even the most sensitive documents. To find out more about Juro’s strict security requirements, fill in the form below to speak to our team.

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