Why Legal Teams Need Contract Management Software
by Sunny Sharma
An intelligent and unified legal contract management software enables users to generate and submit legal requests quickly and effortlessly.
In an increasingly complex world, general counsel and legal assistants are dealing with an increase in contract volume coupled with their specific complexity. Even if a legal department manages to overcome every single hurdle that faces them, a lack of an efficient contract management procedure will create roadblocks for them. According to a recent poll, 26% of respondents said that their law businesses had experienced some type of security breach or increased legal challenges to contracts and agreements.
Legal Firms are Going Digital
Legal organizations are quickly embracing digital transformation. Legal tech investments broke the $1 billion mark in 2018, and in 2019 the figure was topped with $1.23 billion. Another report said 60% of attorneys feel their firm is prepared to implement new technologies for everyday work. As many as 49% of law firms claim that they are successfully utilizing technology currently, while 47% believe they can enhance their use of technology and intend to do so.
But there’s more than digital, there’s AI intervention too. Some stats –
- Offerings of artificial intelligence-based legal technology to enterprises grew by approximately two-thirds in 2020 compared to 2019.
- A legal contract may be evaluated in much less than an hour with the assistance of AI, saving between 20% and 90% of the time required to complete this task manually without compromising accuracy.
How Does Contract Management Software Help Legal Teams?
From the end user’s point of view, legal contract management software helps users to develop formal applications and submit them for approval. A simple online form enables users to collect, save, modify, evaluate, and approve automated requests and helps to eliminate communication delays. Such software equips counterparties, vendors, suppliers, consumers, workers, and providers with a simplified and straightforward procedure, by adopting a standardized and unified approach.
Internally within an organization, due to automatic authorization routing for legal workflows, legal teams may stay in sync. The legal teams may connect any number of files to the contract management software and convert the request records to contract records without re-entering any data. Consolidated document tracking, dynamic work assignments, and almost infinite notifications and alerts allow legal departments to keep themselves accountable.
Reasons Why Legal Teams Obsess Over Contract management software
Legal contracts with prompt, accurate, and legally acceptable document assembly solutions help legal businesses and organizations do their tasks more quickly. This is possible through sound contract management software. Using future-oriented document automation, legal teams (or employees of any department) can dynamically integrate their data fields with clauses in their organization’s pre-approved clause library. Therefore, to create contracts rapidly and export them into standard file formats, legal teams may maintain various document versions and templates.
A simplified process for contract negotiations
A legal contract management software allows numbered version monitoring while detailed logs of contract document iterations help in faster contract negotiation. Organizations can allocate specific subject-matter experts to each portion of a contract using clause ownership tools. A clause’s owner must be added to the approval procedure whenever a contracting party alters it. Under rules-based clause ownership, only essential parties are added to a particular contract negotiation process.
Pre-configured legal workflows
More effective and simplified contract discussions are possible when businesses are granted the ability to establish a rules-based negotiating procedure. With pre-configured legal workflows, contract stakeholders can have access to a state-of-the-art contract collaboration site to collaborate with the people who sign the contract. Documents that pertain to the topic are all conveniently available on that site.
Easy accessibility and review
Providing limited (or contextual) access to non-accessing resources, like workers and outsiders, can ensure that all issued contracts can be easily found and reviewed, albeit securely. Papers required for the contract are separated to help ensure that all parties involved have access to the documents from the site. Additionally, contracts may participate in a single review process while being alerted of approval times. This results in fewer delays.
An essential tool in gaining visibility into contractual connections between organizations and entities is robust compliance reporting and auditing capability. Key dates, reporting metrics, and straightforward renewals to implement and enforce can help regulate compliance requirements and regulations. The fact that credible legal contract management software solutions include OFAC (Office of Foreign Assets Control) search data further emphasizes the legitimacy of those systems. It provides risk analysis snapshots with a single click of the button, helping get insights into potential risks by checking out the vendor, employee, and company data and comparing it to OFAC’s (The Office of Foreign Assets Control) official sanctions lists.
AI-based risk management
A legal contract management software incorporates a comprehensive risk management strategy. Artificial intelligence (AI) allows businesses to effectively and rationally carry out a risk assessment, risk mitigation, and risk analysis. A risk score can help companies maintain their accountability by showing if their software risk solutions are working well or not. If they follow this plan, they will operate according to their strategy to establish the best possible risk management method.
The legal team can better comprehend risks using the risk profile grading tools. Based on risk factors, risk assessment matrices are used on all users. They can use it to predict the likelihood of events occurring inside contracts and determine the risk exposure that such occurrences will create.
Understanding potentially damaging risks might assist attorneys and paralegals in deciding on the best course of action with a specific contract. Team risk visualization may help teams implement more effective risk management choices.
A good legal contract management software supports comprehensive contract administration that offers effective workflow and contract security through practices that lessen bottlenecks, decrease risk, and assist businesses in handling more complicated contracts for better legal operations. For more information and features, contact Team Revnue.