The financial services sector faces unique challenges when it comes to contract management. How can advanced contract AI help overcome them? Let’s focus on three use cases that are highly relevant for financial services firms—in this case, for insurance providers.

A globally-renowned insurance provider launched in 2013 and part of a prestigious global network has achieved global success and a solid reputation. This success is due, in part, to their innovative use of contract AI to tackle significant challenges.

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Data Privacy Compliance

The provider needed to stay compliant with stringent data privacy laws like the GDPR, CCPA, and CPRA since non-compliance poses risks of fines, reputational damage, and lawsuits. Key concerns included ensuring third-party vendors complied with these regulations and quickly identifying contracts with data privacy obligations.

To tackle these challenges, they turned to Evisort to automate the extraction of crucial data privacy clauses from contracts, such as those regarding data minimization, security measures, and data breach notifications.

This significantly reduced the time and effort required for manual reviews. Moreover, the platform enabled them to monitor compliance across all agreements easily and quickly identify contracts involving personal data processing, prioritizing their review.

This led to remarkable improvements in their data privacy compliance efforts. Efficiency jumped as the need for manual contract reviews decreased, allowing the legal and compliance teams to focus on more strategic activities.

Centralizing the entire contract corpus in one repository enhanced visibility into compliance obligations and helped proactively identify gaps. It also allowed them to manage third-party vendor relationships more effectively by ensuring they met requisite data protection standards. By leveraging Evisort, they improved their compliance posture, reduced non-compliance risks, and strengthened customer trust.

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Supporting Operational Resilience

Operational resilience is increasingly vital and mandated by regulators, so they had to review their massive contract inventory to ensure business continuity in case of dynamic global disruptions like COVID-19. The goal? Achieve better visibility into how contract clauses could affect its operational resilience.

Evisort removed the burdens of manual contract scrutiny and modernized compliance. By automating the identification and extraction of crucial clauses related to operational resilience, like force majeure or business continuity, Evisort significantly reduced manual efforts and the risk of error or omissions in oversight. Enhanced search capabilities allowed for rapid, comprehensive searches across the contract repository based on specific terms or keywords.

This accelerated the review process, enabling the legal team to swiftly navigate and assess the implications of contractual obligations amidst disruptions. This agility improved the decision-making process so they could respond strategically to unforeseen events, thus minimizing potential disruptions. Automation also freed up time for its lean legal team to concentrate on high-order tasks like strategic analysis and ensuring compliance satisfies regulators.

Evisort has bolstered their operational resilience and their ability to navigate the unexpected.

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Reducing Vendor-Related Risk

They faced the challenge of analyzing complex vendor contracts for risky language and ensuring third-party risk management (TPRM) compliance with industry regulations. This meant managing risk across a large network of vendors, sub-vendors, sub-sub-vendors, and beyond, while maintaining compliance under the watchful eye of three major regulatory agencies (OCC, Federal Reserve, and FDIC).

With Evisort, they now enjoy automated contract analysis for extracting and analyzing clauses related to third-party risk. They also have a centralized repository for all third-party contracts, enabling easy access and risk management, and continuous compliance monitoring with automated alerts for regulatory changes and potential issues. Vendor risk assessments are enhanced by basing them on contractual terms and data points for focused risk mitigation. Additionally, facilitated auditing and reporting to sustain compliance and identify risks.

Thanks to these improvements, the company enhanced its TPRM program by mitigating risks and increasing operational efficiency. Automated analysis and compliance checks free the team to focus on risk assessment and mitigation strategies.

A centralized contract repository provides greater visibility into their vendor landscape, boosting compliance and aiding proactive risk management. Automated monitoring ensures they stay compliant with regulatory demands, avoiding penalties. By extracting actionable insights from contract data, Evisort enables data-driven decision-making for more informed vendor relationship management.

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What’s Your Use Case?

We’d love to hear about your challenges so we can show how Evisort’s contracting intelligence can help you overcome the most complex financial services contract management issues. Arrange a convenient personalized demo to experience how Evisort empowers you with unparalleled visibility, insights, and opportunities to drive business success.

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