A data processing agreement (DPA) is a contract that ensures service providers can securely process personal data. Although it’s a simple document, manually processing it takes a lot of time. Automation can help process DPAs from end to end in just a few minutes.
DPA automation uses an AI-based engine that allows you to draft, review, execute, and track DPAs.
The requesting manager fills in a questionnaire-based template. The answers are then automatically inserted into a compliant template that was pre-approved by Legal. If all data is in order, the DPA is sent to the counterparty to e-sign. Magic!
Even though DPAs are filled with complex clauses, it’s a simple document that can be drafted in less than a minute instead of hours. Using pre-approved templates prevent unauthorized edits and ensure all necessary clauses are present.
Data needs to be handled carefully. But that doesn’t mean DPAs should be involved in every step of preparation. Automation allows DPA drafting to be delegated to other departments with little risk. Moreover, they can be filled out and processed by your clients with the help of a small questionnaire on a public-facing template.
Document automation cuts down on money spent on paperwork and lawyer hours. Cost savings can then be redirected to more fruitful endeavors. In the case of DPAs, this helps avoid penalties, which (on average) consume 4% of a company’s annual revenue.
When entering data manually, there’s always a risk of making a mistake. Uncorrected errors can lead to breaches that cost companies thousands of dollars each year. Automation handles this job for you much faster without error.
Signs that your DPA processing workflows need improvement
Any activities related to personal data processing should be recorded. Otherwise, you can’t prove compliance with local regulations. This in turn could lead to penalties.
Keeping data safe is a must for any company. But long legal reviews cause delays, missed revenue opportunities, and poor customer experiences.
If critical sections of DPAs go missing, you can’t guarantee your data is protected. This may even render you non-compliant with certain data protection regulations.
This puts your customer’s data at risk while making you responsible for mishandling client information should any third-party services you work with misuse it.
If you’re searching more than one place for your templates, you’re doing something wrong. If you’re not lucky the first time, having to comb through multiple spots is not only time-intensive, but you can never be sure the version you find isn’t out of date.
Find out how your DPA automated workflow can look
Using an NDA as an example, we’ll show you how fast you can draft all your documents. It takes just 57 seconds!
With AXDRAFT, you don’t have to worry about automation because we do it for you. But regardless of whatever software you choose, these steps will walk you through the automation process.
DPAs include information about how a company works with customer data. Typically, such information doesn’t change from client to client. You need to identify which parts may vary and what questions they answer.
The best process to set up is one where users are able to simply generate a DPA and send it to the counterparty. Thanks to automation, such responsibilities can be delegated to non-legal departments without risk.
In situations when clients have some comments or questions before signing, lawyers will be to get involved. Having alternative clauses at the ready helps lawyers avoid spending too much time making changes while remaining compliant. After clarifications, discussions, and maybe some clause changes that both parties consent to, the DPA is signed.
Clause libraries allow you to easily swap clauses in documents when needed. This helps make necessary adjustments and review documents faster while ensuring compliance.
When it comes to legal matters, they’re both important and urgent. This guide will help you get your workload prioritized right so you can delegate tasks and leverage technology to improve your efficiency.
Essential features to look for in DPA automation software
By enabling non-legal units and stakeholders to request, draft, and sign contracts on their own, you save tens of hours weekly both for business and legal departments.
Customers entrust you with their data, which makes protecting it the highest priority. Role-based access ensures that data is accessible only to authorized users.
With public-facing templates, your customers don’t need to create accounts to fill in and sign DPAs. You only need to send them a link to the document where they can fill in the necessary information.
With a centralized repository, you can always be sure that your employees are using the latest versions of templates. It also makes finding necessary documents much easier.
Electronic signatures significantly speed up document execution and allow your clients to sign contracts wherever they are.
FREQUENTLY ASKED QUESTIONS
A DPA is a legally binding contract that ensures that security and data processing activities are in compliance with GDPR requirements, and that data providers are able to prevent any potential abuse or breach of data.
A data processing agreement should include the information stated in GDPR Articles 28 through 36. In short, these are:
It must also mention that the processor can only use the data in accordance with the controller’s instructions.
A data controller or data exporter is a company that owns the data. This company hires a data processor and provides them with access to the data.
A data processor is a third party hired by a data controller to process the data. The ways they can use the data is strictly limited by the DPA. For example, a data processor can be an accounting firm hired by your employer to calculate the payroll.
A DPA lays out the technical and organizational requirements for the controller and processor to ensure that data processing activities and security measures comply with GDPR requirements. It regulates how data should be stored, protected, processed, accessed, and used. It also states what contractors can and can’t do with the data.
A DPA states how personal data will be used and outlines the responsibilities of each party. This information must be determined by a data controller (a company that owns the data). Signing a DPA guarantees that both the controller and processor protect personal data in accordance with GDPR regulations. Automation simplifies this process by using applicable templates to draft DPAs in minutes and tailor it according to the situation or client.
Get the most out of your contract lifecycle
Here’s how much AXDRAFT CLM helps you save annually for every 1,200 contracts you process
$28,3K + contract value
Speed up your business with automation
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Axdraft is very easy to use and produces documents quickly. It is entirely customizable, and customer support is extremely responsive. In our case it allows attorneys to be more productive and less reliant on the availability of a legal assistant to draft estate planning documents and probate pleadings and related documents.
Routine busywork steals your team’s time. Automate DPAs and spend the time you gain on more productive activities
Shift your contract management into high gear