How DMS can revolutionise contract management systems in financial services

Just like a gym enthusiast works out to build strength and maintain health, a Contract Management System (CMS) strengthens your legal operations and keeps your contract processes in top shape. Whether you’re negotiating, drafting, or managing the lifecycle of contracts, a CMS is the gym equipment for your contractual needs.

Financial services legal professionals face a rigorous workout of challenges, requiring solutions that are not just robust but also efficient and secure. Contract Lifecycle Management (CLM) emerges as the heavyweight champion in the gym of legal operations, essential for those in the financial sector where precision in contracts directly influences the scoreboard of business success.

The role of DMS in Contract Lifecycle Management

A Document Management System (DMS) is designed to store, manage, and track business content, such as documents and emails in one central repository. iManage, as a leading Document Management System, offers more than just storage solutions—it enables a systematic approach to managing the lifecycle of documents, which is particularly essential for contract management in financial services. Here’s how iManage DMS supports each phase of the CLM process:

Contract creation:

The genesis of any contractual agreement is document generation. iManage DMS can integrate with CLM solutions like Lawcadia, which allows legal teams to create templates that standardise contract creation, reducing the risk of errors and ensuring consistency across all documents. With powerful integration capabilities, data from other systems can be seamlessly pulled into contracts, speeding up the drafting process without sacrificing accuracy.

Contract collaboration and negotiation:

Collaboration is a cornerstone of effective contract management. iManage DMS facilitates real-time collaboration, allowing multiple stakeholders to review, edit, and comment on documents simultaneously. Version Control is a critical feature here, ensuring that everyone is working on the latest version of a document and making tracking changes straightforward. This significantly reduces the time spent in the negotiation phase and prevents contract lifecycle bottlenecks.

Contract approval process: 

Once a contract is drafted and negotiated, it moves to the approval stage. iManage DMS integrates with many CLM solutions to streamline this process through workflow automation tools that route documents to the appropriate parties for approval. 

Contract execution:

Contract execution, involving the signing of agreements, can also be managed through iManage DMS with the additional DocuSign integration, which supports digital signatures. This capability not only speeds up contract execution but also enhances the security of the documents, an essential factor for financial services organisations concerned with compliance and data protection.

Ongoing management and compliance: 

After execution, contracts must be monitored and managed to ensure compliance with terms and regulatory requirements. The system’s advanced search capabilities enable quick retrieval of documents, which is crucial during audits or in response to legal inquiries.

Contact renewal and disposition:

Finally, managing the renewal, amendment, or disposition of contracts is facilitated by iManage DMS. 

Challenges in financial services

Financial services businesses operate in a highly regulated environment where compliance, security, and operational efficiency are paramount. Here’s how iManage DMS in conjunction with a CLM addresses these FS specific pain points:

Regulatory compliance: 

iManage DMS supports compliance tracking and reporting, crucial for financial services that face stringent regulatory scrutiny. It's the industry leader in protecting sensitive and confidential content, helping compliance teams to save content quickly and intuitively, with need-to-know access and security protections defined at the document level. Content is clearly organised by project, client, or case, with powerful search tools to quickly find and retrieve information when needed. All access to content is governed and audited, with clear document histories and defined retention schedules.

Security and risk management:

With advanced security features, such as Security Policy Manager (SPM), iManage ensures that sensitive information is protected against unauthorised access and breaches. Comprehensive audit trails also help in monitoring document access and modifications, thus mitigating risks. Security Policy Manager enables organisations to protect their sensitive information by deploying information barriers at scale across client, department, or project levels. Segmenting knowledge work based on confidentiality requirements and enforcing need-to-know access for select staff, such as lateral hires, reduces the risk of data exposure. With Security Policy Manager, you can meet growing client requirements and regulatory obligations without impacting user productivity or business continuity.

Operational efficiency:

Automating many aspects of the document lifecycle by integrating third party CLM solutions, iManage DMS reduces manual labor, minimises errors, and speeds up the entire cycle of contract management. This efficiency is vital for staying competitive in the fast-paced financial services sector.

DMS and CLM go hand in hand 

For legal professionals in the financial services industry, managing contracts efficiently and securely is not just a necessity—it's a strategic advantage. iManage DMS plays a pivotal role in the contract lifecycle management process by enhancing operational efficiency, ensuring compliance, and mitigating risks. Integrating iManage into your organisation’s CLM strategy is an investment in reliability, professionalism, and ultimately, business success.

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See also:

• Demystifying the CLM process for Financial Services
• Download our FREE CLM eBook
• See our full range of Contact Lifecycle Management solutions

FAQs

What does a contract management system do?

A Contract Management System (CMS) automates and streamlines all stages of the contract lifecycle, from creation using templates to secure storage and easy retrieval. It facilitates workflow by managing reviews and approvals, ensures compliance with regulations, and monitors key milestones with alerts. Additionally, it integrates with other business systems for seamless data flow, offers robust security features, and provides analytics for better decision-making, making it essential for efficient and effective contract management.

What is an example of contract management?

An example of contract management is a business using a Contract Management System (CMS) to handle client agreements. The CMS automates the creation of new contracts using pre-approved templates, tracks the review and approval process through integrated workflows, and sends alerts for upcoming renewal dates. It securely stores all contracts, allowing easy access for audits, ensures compliance, and integrates with DMS systems.

What is the difference between contract management and contract lifecycle management (CLM)?

These two terms are often used interchangeably. However, contract management is typically a manual process of managing spreadsheets, emails, and documents that constitute the contract for business. CLM is a continuous, end-to-end methodology that encompasses technology, people, and processes to help reduce revenue leakage, improve profitability, and ensure security and compliance.