Contract Drafting and Management: Developing Provisions to Mitigate Security, Compliance, and Technology Risks

Description

General counsel is continuously attempting to mitigate risk and reduce liability exposure, and a primary means of achieving those goals is through contract management. Since corporate revenues are typically tied to agreements with customers and vendors, proactive contract risk management is necessary to limit costs and penalties while maximizing profits.

Active risk management by counsel will require compliance with the California Consumer Privacy Act, as well as other relevant privacy provisions and industry standards. Rather than merely providing a routine update to a privacy policy, general counsel could use the opportunity to engage customers and clarify how consumer data is being handled and enhance the customer experience.

Corporate counsel must comply with new rules (ASC 606 in U.S. and IFRS 15 in Europe) recognizing revenue in business transactions, which states that legal terms can now affect the deal value if they create or modify the performance obligations. Businesses must prepare to engage counsel from the onset of contract negotiations, as a link between revenue recognition and payment terms will require collaboration between legal and other departments.

Finally, businesses must prepare to enact appropriate plans as technology innovates the means of contract management. AI and blockchain are beginning to automate routine contract drafting and compliance tasks, allowing legal professionals to spend more time on high-value activities. Counsel needs to know both which form of technology to use and how to best handle the large volumes of data that will be critical in managing risk.

Listen as the panel of seasoned practitioners provides in-depth recommendations and practical guidance for handling privacy, compliance, and technology risks. The panel will focus on strategies for avoiding common pitfalls in risk management and provide insights to help reduce liability.