5 ways legal departments can ensure data security

Cyberattacks are a pressing concern for almost every organization, their partners, and customers. Besides damaging a business’ operations and exposing sensitive information, data breaches can have an immediate financial impact too. As per IBM’s Cost of a Data Breach Report 2022, the global average cost of data breach reached $4.24 million in 2021. While the IT department usually takes care of many of the data-related tasks, the rising legal and financial risks of compromised data privacy measures have led in-house legal departments to come forward and take on the responsibilities together with IT.

Below are five ways legal departments can help protect their organisation and its data:

1. Perform an Internal Data Privacy and Security Audit

The internal audit covers two significant areas owned by two different parties. First, legal departments should examine whether current data management acts in accordance with updated data privacy laws, whereas IT should examine the weak points of security infrastructure. Together, these findings create a clear picture of where data risk exists and what needs to be addressed. For a look at what GDPR specifically requires of contract management processes, see GDPR & Contract Management: 6 Must-Have Features.

2. Update Your Data Privacy Policies

Following the audit, policies need to reflect current regulations and practices. Data retention periods, deletion procedures, and third-party sharing agreements should all be clearly documented and enforceable. For organisations handling significant volumes of vendor contracts, this is particularly important — contracts with suppliers often contain personal data obligations that need to be managed systematically.

3. Tighten Access Controls on Contract Data

Contracts frequently contain sensitive commercial and personal information. Role-based access controls ensure that only authorised individuals can view, edit, or approve contracts. In a well-configured CLM platform, these permissions are enforced at the system level, not just by policy. For more on what contract governance means in practice, see Contract Governance: What Control in CLM Actually Means.

4. Use Secure Contract Management Software

Storing contracts in email folders, shared drives, or local desktops creates avoidable risk. A secure CLM platform with encryption, audit trails, and EU data hosting addresses these risks systematically. For a full overview of what contract management security involves, see What is Contract Management Security?

5. Train Your Team

Security controls are only as effective as the people who use them. Regular training on data handling practices, phishing awareness, and the specific requirements of regulations like GDPR keeps security culture strong. Pair training with clear written guidance on how contracts should be created, stored, and shared, so good practices become the default rather than the exception.

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