Advantages of data protection management software

A data protection breach can happen in the blink of an eye: a missing data processing agreement, an outdated record of processing activities, or a data subject request that’s answered too late. The GDPR leaves little room for error, and fines under Article 83 can be substantial. At the same time, the administrative burden of data protection is steadily increasing in many companies, while resources remain limited. Data protection management software brings structure to this process. In this article, you’ll learn what features such a solution must offer, what to look for when selecting one, and why combining it with a “ contract management ” system makes all the difference.

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What is a data protection management system?

A data protection management system (DMS) is comparable to a solution kit that equips companies with the necessary organizational structures, processes, tools and methods to implement data protection requirements efficiently and in compliance with the law. The aim of a DSMS is to create the conditions for handling personal data in compliance with the GDPR. The DSMS itself does not process or store any data, but provides the framework and tools to handle it securely and in compliance with the law.

A central component of a DSMS is the creation and regular updating of data protection declarations, for example for websites or social media profiles. It also includes the management of records of processing activities, in which companies document what data they collect, how it is processed and who has access to it.

The implementation of technical and organizational measures (TOMs) is another core element. These security measures, such as encryption, access restrictions or regular backups, ensure that data is protected against unauthorized access.

In addition, a DSMS supports the management of order processing contracts (AV contracts). These contracts regulate how personal data is passed on to external service providers, such as cloud software providers. It also makes it easier to obtain consent, for example through the use of consent tools, and to process requests from data subjects. The latter relate to individual rights, such as the right to information about stored data or its deletion, and require timely and complete processing.

Even if there are no binding standards for a data protection management system, a system is considered a DSMS if it contains the necessary processes, tools and instructions and these are implemented appropriately. This enables companies to reliably comply with the GDPR and supplementary regulations, such as the Federal Data Protection Act (BDSG-new).

A data protection management system therefore goes beyond mere compliance with legal requirements. It creates transparency, improves security in the handling of sensitive data and makes it easier for companies to cope with the complex requirements of data protection. This results in the following advantages:

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The 5 most important advantages of data protection management software

1. increased customer confidence and improved compliance improved compliance

• Compliance with data protection and contractual provisions has a positive impact on your corporate image and is a positive decision-making factor in many discussions.
• Regular monitoring of all data protection and contractual provisions and compliance with them has a positive effect on your general compliance.

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2. overview and cost control through centralized management of contracts and data protection documents.

• By managing all contractual documents in one central location, you get an overview of your contractual obligations and can better control costs. In addition, you can ensure that all data protection documents are up-to-date and legally compliant.
• Interesting fact: By using contract management software, companies can save up to 30% on contract costs (AXDRAFT, 2021).

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3. protection against data loss and misuse through security measures taken.

• This is particularly important—and also required by law—when it comes to personal and sensitive data in important (data protection) documents and contracts. By using contract management software, you can protect your contractual documents from data loss and misuse. contract management software typically offers a wide range of security measures, including encrypted data storage, access control, and user management.

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4. maximizing the investment of employees' time by working efficiently.

• By automating processes, you can save time and reduce the workload of your employees. Not only does it save time by making it easy to find contracts, but it also makes it easier for colleagues to collaborate more quickly. This allows you to focus on more important tasks and increase your efficiency.

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5. improving efficiency in the company by actively minimizing the risk of penalties and other foreseeable events

• Contract management software can also help here. The software makes it easy to ensure that all documents are up-to-date and meet legal requirements, which enables better compliance management. This is not only noticeable on the balance sheet, but also promotes secure business operations.
• Interesting fact: Companies that use contract management software can achieve a 15% increase in productivity compared to those that do not (Aberdeen Group, 2005).

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Why is data protection software important for companies?

Data protection software enables companies to comply with the legal requirements of the GDPR efficiently and reliably - even if there is no in-depth specialist knowledge in the company. It automates routine tasks and optimizes processes that are often error-prone and time-consuming without such a system. Its use becomes even more efficient when data protection functions are combined with document management software: This also allows contractual and data protection-related documents to be centrally controlled and clearly managed. Without an appropriate solution, improper data handling, incomplete records or difficulties in implementing current changes to the law can quickly lead to problems.

An integrated system reduces the risk of human error, such as incorrect data protection declarations, and helps to record and manage personal data correctly. It ensures that all necessary requirements, such as the encryption of contact forms, are met. In this way, the software not only protects against fines - as per Art. 83 para. 24 GDPR - but also enables the smooth integration of data protection into daily operations.

A major advantage becomes apparent when data protection management is combined with contract management : Companies need only one centralized system that covers both areas. This not only simplifies compliance with the GDPR but also saves time and resources, while simultaneously improving oversight of all relevant documents and processes. Data protection software is thus not only a practical tool but also an indispensable element for ensuring legal certainty and efficiency within companies.

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In summary, established contract and data protection management platforms offer a variety of benefits, including cost savings, simplification of day-to-day work with data protection and contract law issues, increased customer confidence, and strong compliance. In addition, the management of contracts and data protection documents can be centralized, enabling improved cost control as well as protecting against financial penalties. Especially for personal and sensitive data, security measures taken ensure protection against data loss and misuse.

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We've teamed up with our partner heyData to discuss the biggest benefits and pitfalls of data protection and contract management . Here's a list of the biggest pitfalls.

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