Limit Data Risks Using the Correct Contractual Terms
by Marketing Team | May 19, 2023
In today's digital age, data is a valuable asset. It can create new products and services, improve business operations, and make better decisions. However, data is also vulnerable to theft, misuse, and loss.
One way to protect data is to use the correct contractual terms. By carefully drafting contracts, businesses can limit their data risks and ensure their data is handled properly.
Key Contractual Terms for Protecting Data
- Data security requirements: The contract should specify the security measures the other party must take to protect the data. This could include encryption, access controls, and disaster recovery plans.
- Data breach notification: The contract should require the other party to notify the business immediately if there is a data breach. This will give the business time to take steps to mitigate the damage.
- Data localisation: The contract should specify where the data will be stored. This can help to protect the data from being accessed by unauthorised parties.
- Data retention: The contract should specify how long the other party will retain the data. This will help ensure that the data is not kept longer than necessary.
- Data deletion: The contract should specify how the other party will delete the data when it is no longer needed. This will help to prevent the data from being misused or lost.
- The data type being transferred: Some classes are more sensitive than others, so the contractual terms should be tailored accordingly.
- The purpose of the data transfer: The purpose for which the data is being transferred will also affect the contractual terms.
- The relationship between the parties: The relationship between the parties to the contract will also affect the terms. For example, a contract between a business and its customer will differ from a contract between a company and its supplier.
- Get legal advice: It is essential to get legal advice when drafting contracts to protect data. A lawyer can help ensure the contracts are appropriately prepared and meet the business's needs.
- Use standard forms: Businesses can use several legal forms to protect their data. These forms can be a good starting point but should be tailored to the business's needs.
- Be proactive: Businesses should not wait for a data breach to occur before taking steps to protect their data. By being proactive, businesses can reduce the risk of a data breach and the damage that it can cause.
Data Lakes and Contract Discovery
Data lakes are a centralised repository for all an organisation's data, regardless of source or format. This makes it possible to store and analyse data from various sources, including contracts.
Contract discovery is finding and extracting contracts from a data lake. This can be challenging, as contracts can be unstructured and heterogeneous. However, several tools and techniques can be used to automate contract discovery.
Why is contract discovery important?
There are several reasons why contract discovery is essential. First, it can help organisations to comply with regulations. For example, the General Data Protection Regulation (GDPR) requires organisations to record all personal data they process. Contract discovery can help organisations to find and identify contracts that contain personal data.
Second, contract discovery can help organisations to manage their risks. For example, if an organisation is involved in a dispute, contract discovery can help the organisation find the relevant contracts that may be needed to resolve the dispute.
Third, contract discovery can help organisations to improve their decision-making. For example, by analysing contracts, organisations can gain insights into their business partners and their relationships with those partners. This information can be used to make better pricing, marketing, and strategic partnership decisions.
How can data lakes be used for contract discovery?
Data lakes can be used for contract discovery in several ways. One way is to use natural language processing (NLP) to extract keywords and phrases from contracts. These keywords and phrases can then be used to search for agreements relevant to a particular topic.
Another way to use data lakes for contract discovery is to use machine learning (ML). ML algorithms can be trained to identify patterns in contracts. These patterns can then be used to classify contracts into different categories automatically.
Finally, data lakes can create a knowledge graph of contracts. A knowledge graph is a network of entities and relationships. In contract discovery, a knowledge graph can represent the relationships between different agreements, parties, and terms.
What are the challenges of contract discovery in data lakes?
There are several challenges associated with contract discovery in data lakes. One challenge is that contracts can be unstructured and heterogeneous. This means they can be written in different formats and contain different data types.
Another challenge is that contracts can be large and complex. This can make it difficult to extract the relevant information from them.
Finally, contracts can be updated frequently. This means the contract discovery process must be automated and scalable to keep up with the changes.
How can these challenges be addressed?
There are several ways to address the challenges of contract discovery in data lakes. One way is to use NLP to extract keywords and phrases from contracts. This can help to identify the relevant information in the contracts.
Another way to address the challenges is to use ML algorithms to classify contracts into different categories. This can help to organise the contracts and make them easier to search.
Finally, data lakes can create a knowledge graph of contracts. This can help represent the relationships between agreements, parties, and terms. This can make it easier to find the relevant agreements and information.
Data lakes can be a valuable tool for contract discovery. By using the right tools and techniques, organisations can automate the contract discovery process and find the relevant contracts they need. This can help organisations comply with regulations, manage risks, and improve their decision-making.