Mitigate Risks by Modifying Your Existing Processes
During the typical transaction process, lawyers often use email to send and receive highly sensitive documents and information.
The typical transaction process is also chaotic. Attorneys are managing deals with Word documents and Excel spreadsheets, storing documents in document management systems and virtual data rooms, tracking tasks in notepads and on Post-it notes. They are likely transmitting confidential information via unencrypted email.
Even if the attorney encrypts the email, it’s unlikely the client has the tools to send documents back to the attorney securely. As a result, there’s a lot of room for risk and error in the current process. Not only is the practice full of risk, it also provides an overwhelming experience for clients.
Consider the current signature process. Attorneys are sending the highest level of information to clients through email. They create several sets of documents with M&A data, disclosure schedules, etc., and send to signers. Then the signers print off the documents, sign them, scan them and send them back through email. These documents often contain bank account or wire information.
Attorneys need to invest in digital technology that automates antiquated manual processes so documents are transferred in a secure manner. Law firms who are investing in workflow automation software solutions are giving clients the assurance that their information is protected.
Why Focus on the Transaction Process?
Think of all the sensitive data that is sent unencrypted from the beginning of a deal to closing. What if the details of your deal sheet were compromised in a phishing scam, or your client’s current valuation of an acquisition target leaked to another potential buyer?
Don’t forget the potential human error risks of using unencrypted email. What if your client isn’t ready to tell his or her employees that the company has been sold, but you accidentally emailed the terms of the deal to the company’s HR director?
A secure message system would have put a barrier between that information and the HR director’s inbox.
Consider the potential implications of the traditional process:
- Delays and inaccuracies
- Security risks
- Lost or missing signatures
- Increased write-offs
- Reduced ROI
- Negative client experience
You could misspell a client’s name. You may omit a page or not add all appropriate parties to the signature pages. It’s a slow and arduous task to assess signature collection status. Plus, you could miss a deadline for deal closure.
By using a secure portal for end-to-end transactions, you will save time, prevent potential headaches, and mitigate risks for both you and your clients.
You can learn more about how you can help prevent costly errors and secure your client information in our eBook, “Technology Solutions Mitigate Risk of Data Disclosure.”