In every transactional practice there are deals with confidential, sensitive, and private information – demanding every possible safeguard. Today’s “insecure” technology environment of hacking, breaches, Wikileaks, and ransomware, from both domestic and foreign culprits, challenge legal professionals to protect themselves, their clients, their legal teams, and those they do business with from risk and liability. Particularly with regard to confidential and sensitive matters, a transactional practice simply cannot continue to operate in the “way it’s always been done” without risking malpractice, ethical violations, embarrassment and lose of reputation and clients.
The vast majority of communication in transactional work has, in recent history, been conducted via email, and documents managed through email attachments. While some advantages might be gained using shared file locations, a Document Management System, or other file-sharing solutions, these are typically not all-inclusive and still produce scattered information and significant manual effort to monitor and (when necessary) audit. All of which use valuable time and resources and increase the risk of disclosure – the more scattered the information, the more manual a process, the more likely there will be mistakes.
Consolidating transactional information into a single, secure repository has advantages not only in the efficiencies gained, but also with regard to security, compliance, and avoidance of risk and liability. When choosing a deal room repository, these should be primary considerations. Some things to consider:
- 256-bit encryption is one of the most secure data/file encryption techniques available. It is used for sensitive financial/bank information, by the healthcare industry to keep medical records secure, and by the military and the U.S. government. It has been referred to as one of the strongest encryptions available.
- The more granular a software’s permissions, the more control the software administrator has on accessibility to data by users and their use of certain features. Simply allowing a user (external or internal) access to a shared location is insufficient, considering the havoc that can be inflicted thereafter. Control of not only the file location and documents to be accessed, but also what the user can do to the documents (editing, downloading, deleting, etc.) should also be managed through a single interface.
- Monitoring and audits of activity within the repository (including granular insight into the editing of documents) provide greater security and control over adherence to compliance policies:
- tracking the progress of a deal
- auditing activities by users
- viewing, editing, and downloading history of a document
- redline comparisons of documents
- maintaining the integrity of all versions of a negotiated document (original, redline, and final)
These not only provide practitioners actionable intelligence by which to improve the effectiveness of a specific deal or document, advance development of best practices, and create greater efficiencies, but they also add several layers of security, compliance monitoring, and defensible hindsight if ever challenged.
Cryptacomm is a highly secure, 256-bit encrypted virtual deal room that consolidates documents and information related to sensitive transactions. Cryptacomm facilitates collaboration amongst relevant parties with granular permissions to control internal and external access and use of functionality. Users can be enabled to communicate and to view, search, and edit documents while maintaining the integrity of all document versions. Robust reporting allows auditing of deal progress, changes made to documents, and the activity of users. Click here to learn more about how you can use Cryptacomm for due diligence, contract negotiations, M&A, and other sensitive business matters. . Also, for arbitration team collaboration Click here to learn more.