Electronic contract management systems are comprised of programs used for storing and managing legal agreements—such as contracts with vendors, leases, licensing agreements, and many more. An important function of electronic contract management systems is the ability to streamline administrative tasks and reduce overhead by providing a single, unified view of each contract’s processes.
When it comes to contracts, more often than not you get hurt by what you don’t know—not what you do know. The risks associated with contracts and contract management are clear and without the proper approach you are running the risk of taking a financial hit or, even worse, one to your firm’s reputation. Fortunately, electronic contract management systems can help mitigate these risks in a number of ways.
Facilitate Contract Compliance
Ultimately, contract compliance comes down to continuous oversight and keen attention to detail. It is crucial to not only maintain that you are holding up your end of the deal, but that the other parties involved in the contract are as well. Using an electronic contract management system, you are able to oversee the contract on an enterprise-wide level. Electronic contract management systems eradicate the time-consuming aspects of contract management, allowing your firm to dedicate time and energy to the more complex matters that impact contract compliance.
Limit Access and Keep Contract Data Confidential
Any reputable electronic contract management system will offer rigorous security measures; thus reducing the likelihood that any important data becomes compromised, and ensuring its confidentiality. Furthermore, and perhaps somewhat related to keeping a contract’s data confidential, is the importance of limiting access. Whether it be internally, such as a disgruntled employee, or an external hacker, it is important that no data is misappropriated.
Never Miss Another Milestone Date
Every contract comes with significant dates that absolutely cannot be overlooked. Due to the time sensitivity of contracts, it is crucial for firms to meticulously monitor these important dates—which may include deadlines for exercising an option, notice for contract termination, and renewals. The supervision of these tasks becomes much simpler with the implementation of an electronic contract management system—guaranteeing that you never overlook another contract milestone.
With all of the potential risks that live within each of your contracts, it is imperative to have an enterprise-wide view, which will allow you to constantly keep track of every aspect of your business relationships. By having complete insight into all of your contractual data, you can gain a comprehensive view of your business’s risk. An electronic contract management system can ensure compliance, limit access, and keep contracts confidential throughout the entire process—all while streamlining administrative duties and reducing your firm’s overhead.
