Advantages of data protection management software

Contract and data protection management platforms help to save costs and time and simplify the day-to-day handling of data protection and contract law matters.

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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 DMS is to create the conditions for GDPR-compliant handling of personal data. The DMS 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 DMS 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 DMS supports the management of data processing agreements (DPAs). 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 DMS 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.
• Exciting fact: Companies can save up to 30% on contract costs by using contract management software (AXDRAFT, 2021).

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

• This is especially important for personal and sensitive data in important (data protection) documents and contracts, and is also mandatory by law. By using contract management software, you can protect your contractual documents from data loss and misuse. Contract management software usually offers a variety 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.
• Exciting fact: Companies that use contract management software can see 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. Without an appropriate solution, improper data handling, incomplete recording 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.

Combining data protection management with contract management offers a major advantage: Companies only need one central system that covers both areas. This not only simplifies compliance with the GDPR, but also saves time and resources while improving the overview of all relevant documents and processes. Data protection software is therefore not just a practical tool, but an indispensable element in ensuring legal security and efficiency in 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 teamed up with our partner heyData to talk about the biggest benefits and faux pas of data protection and contract management. Here you will find the list of the biggest faux pas.

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