Why is Contract Management Software important to Compliance?
Compliance is cumbersome! It is a never-ending process, especially when you manage your business operations across multiple countries. As your business grows, there are more regulations to follow, more risks to address, and more safety issues to deal with. Eventually, driving a compliance initiative becomes an overwhelming task.
Undoubtedly, compliance issues can arise anywhere – sometimes you have no idea from where they are popping up. If you want to avoid your business from facing massive fines and costly breaches, you need to ensure that your business is not facing any compliance issues.
What is compliance?
According to TechTarget, “Compliance is either a state of being in accordance with established guidelines or specifications, or the process of becoming so.”
Did you know streamlining your contract management or leveraging a contract management software helps you to get compliant easily. Let’s discuss how:
There are two areas that need skilled management:
- Compliance with the contract terms
- Compliance with regulatory needs
Compliance with the contract terms
The detailed documentation of a contact is essential for the success of your business. It is important that everyone should understand and comply with the content. This is where you need to monitor the compliance within the contract system. Even if a minute part of the compliance process fails, the whole organization can be jeopardized with financial and legal risks. It creates a need for a contract management software to monitor processes, standards, and business rules.
Compliance with regulatory needs
Every party, including employees, suppliers, vendors, and third parties in your contract is covered by regulations. Your organization needs to comply with the regulations that govern your conduct within the boundary of your relationship with these parties. Every interested party has legal rights in terms of what they expect from you and you have to meet the same. Any failure to do so can trigger legal actions.
Did you know keeping up with the changing regulation is the topmost challenge for 47% of organizations. Training employees and handling policy version control comprise 40% and 32% significant challenges, respectively.
Around 44% of organizations have faced external regulatory actions in the past three years where a guideline came under inspection as part of the action.
An advanced contract lifecycle management software helps businesses to run in tandem with the compliance and regulatory actions.
What is contract lifecycle management?
Contract lifecycle management (CLM) streamlines and automates key contract processes, including initiation, workflow, authoring, negotiation and approval, execution, ongoing management, compliance, and contract renewal.
The contract management software creates common language and unified terms to reduce errors and save time. It offers greater visibility into all corporate expenditure and creates efficiencies in the whole contract management process.
A contract management software:
- Manage procurement, sales contracts, IP licenses, and internal agreements
- Automate and accelerate the contract lifecycle from start to finish
- Standardize and control contract development
- Enhance contractual, operational, and regulatory compliance
- Create contracts faster with pre-approved templates and legal clauses.
How does contract management software help in compliance?
A right contract management software helps in compliance and regulations in following ways:
Leverage automation to keep track of data
How many disparate spreadsheets do you maintain to keep track of compliance in your organization? Organizations typically struggle to keep compliance data in an integrated place. A contract management software can store, update, and monitor data in real-time in a connected space. It simplifies complex compliance data with specific clauses and terms. Small organizations find it intimidating and large organizations find it overpowering. Make it simple with a contract management software.
Access all your compliance needs in a single repository
A right contract lifecycle management software comprises all compliance related needs. It stores all data in a central repository with maximum safety and access control. It assures your compliance with all data protection regulations. Detects risks within any new business relationship with intelligent questionnaires. Thus, manage all your legal obligations with clients and employees.
Thoroughly vet potential business partners with risk mitigation features
The risk mitigation features of a contract management software empower you to vet your potential suppliers, vendors, employees, and third parties thoroughly. With such compliance protection, you can identify any corruption, money laundering, and cyber crime elements with ease.
Overcome cross-border compliance issues with the right package
If you use a contract lifecycle management software, getting compliant with the cross-border laws and regulation becomes simple. Specially, organizations with international operations find this complex, as the laws and regulations differ from one to another country. The right packaging of a contract management software enables any business to store the regulations with custom accessibility.
Simplify compliance monitoring to enhance customer retention
A contract management software simplifies compliance monitoring to boost the customer retention in the following ways:
- Standardize language and clauses in your contracts.
- Track all activities and get instant notification on the same.
- Never miss a deadline and milestones with instant tracking features.
- Accurate reporting delivers in-depth business insights.
- Identify the compliance issues in advance to do the needful.
- Achieve regulatory compliance with auditable documentation.
Achieve 100% compliance with CommerceCX
We at CommerceCX are specialized in implementing complex Contract Lifecycle Management software to address all your compliance needs globally. Our CLM experts can help implement solutions that will enable your organization to reduce costs and improve company performance with ready-to-use and clear regulation clauses. We are noted Salesforce implementation partners and will have additional Apttus, Conga, and Microsoft Technologies expertise.
We create the right package of CLM with:
- Contract Creation and Negotiation
- Document Generation
- Renewal Management
Talk to an expert to simplify compliance with our CLM implementation.