Why Your Security Framework Can Make or Break Your CLM Strategy
The notion of Contract Lifecycle Management (CLM) is not a new concept; memorialized contracts are at the basis of nearly every significant event or obligation. From the Hollywood actor whose movie contract declares the specific number of films to appear in, or the exchange-traded wheat futures contract which states the amount and grade of wheat which must be delivered to a specific location by a specific date, these are just a few examples of how contractual obligations must be managed. That being said, advances in technology, coupled with the evolution of CLM theory, have created opportunities to improve efficiencies in various contract lifecycle management processes. One of these advances is in the area of data security. By implementing a security framework that enables data-driven security, more fluid aspects of the CLM strategy can be controlled and managed.
New data-level security capabilities are rewriting security frameworks. For the past 30 years, infrastructure security technologies have masqueraded as data security technologies. But when data leaves a secure infrastructure, it fails open – that is, when the user authentication fails but results in providing open access to authenticated and secure data – leaving it vulnerable. Sagence has pioneered a new model that changes that notion entirely. We have developed a multi-faceted entitlements framework to provide a secure channel for sharing documents. And we have partnered with Ionic, the first organization to bring to life the ability to manage data in a way that, when data leaves a secure infrastructure, it defaults close – that is, explicit permission is required to open and access data. Sagence and Ionic are looking past the old models of data security and together are implementing truly data-driven security frameworks.
With this advanced framework, Contract Lifecycle Management can mitigate many of the common risks faced by organizations. Typical pain points of the CLM process often fall into three categories:
- performance-related issues
Let’s look at how a data-driven security framework can help overcome these pain points.
Traditional contract creation processes lack formal language standardization and often times involve multiple departments (i.e., legal and business line stakeholders). By establishing a data-driven security framework to account for this lack of standardization, a notion of controlled sharing becomes possible. The attributes of both the user and the document allow information to be securely distributed. By managing and controlling these nuances in the CLM process, your company is able to mitigate contract and legal risks, while effectively increasing the robustness and controls surrounding the state of negotiations at a certain point in time.
Another unique feature of managing contracts is that frequently both internal and external parties need access to a document in order to fully execute the contract. Mechanically this means that your security framework must account for various levels of document visibility. A common practice of redlining documents often leads to multiple versions of the same documents and multiple changes within a version of the same document. With the Ionic platform, the ability to track and monitor a document in transit and allow for visibility based on document attributes are key to securing digital information. Whenever a request to interact with the secured data is made, a real-time request for access to the key for that individual piece of data is also made.
Finally, performance monitoring and metrics in the CLM process have traditionally been based on a few antiquated metrics. The main metric used has been the time it takes from initial contract creation to execution. As a broad metric, this has been sufficient. But what does this really say about the quality of changes during the CLM process? Tracking various quality metrics (e.g., number of changes to a document, changes by a specific party, etc.) can both help identify bottlenecks within the CLM process as well as lead to more efficient changes to future documents.
If you are looking to improve your contract management strategy, adding a data-centric security framework to your existing software can help. To learn more, view our informational brochure below.
Sagence works with clients to extract value from their data assets by implementing innovative techniques that complement traditional data management methodologies. Ionic, the industry’s first high-assurance data protection and control platform, takes a comprehensive approach to securing distributed data by protecting and controlling data everywhere it travels and anywhere it resides. Together Sagence and Ionic provide a data-centric security framework that enables enterprises to share data in a secure and controlled manner.
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