Using Microsoft 365 Sensitivity Labels for Contracts

Most legal experts think that encrypted email equals contracts that are safe. That idea seems right, but it's often not the whole story.

How do you make sure your contract stays safe no matter where it goes?

The secret is using domain-gated encryption and identity-based rules in Microsoft 365.

What happens to your contract after it leaves your inbox?

Once a contract is sent to someone outside your company, like a lawyer or vendor, it's beyond your security. It could be sent to others, downloaded, or saved to an outside cloud. Your security can't control it anymore.

When contracts aren't protected, it can cost you money and hurt your reputation. The issue isn't email itself, but trusting security that only covers your company.

Microsoft 365 sensitivity labels can change that. They turn contracts into secure files instead of unprotected attachments.

Key Takeaways

• Email encryption alone won't protect contracts once they're sent outside your company.
• Microsoft 365 sensitivity labels add protection to the contract file itself.
• Domain-level security lets you protect entire vendor systems, not just single emails.
• Specific permissions like view-only and restricted editing lower the chance of data leaks during talks.
• Dynamic watermarks stop people from taking screenshots without permission and make sure people are responsible.
• Automatic labeling and logs change file-sharing into controlled, secure management.

What does it mean to secure a whole vendor's system?

Usually, sharing files means listing each person's email. This takes time, can have mistakes, and is hard to manage as you grow.

Instead of approving many emails, you approve one domain you trust. Anyone in that domain who is verified can open the contract if they follow the rules.

This makes things easier and lowers the chance of mistakes. It also makes sure access is based on who people are in the company, not just personal email lists.

How does Microsoft check who can open the file?

Encryption comes from Azure Rights Management Services in Microsoft 365. When someone from a vendor tries to open the contract, they are checked against their company's ID.

Microsoft checks if the user is part of the approved domain. It then makes sure they follow the rules set for the file.

This approach aligns closely with the principles of Zero Trust security in Microsoft 365, where every access request is verified before a contract can be viewed.

If the user can't prove they belong to that system, they can't read the file. The contract is like a safe that needs domain-level access.

Is read-only enough when negotiating?

When talking to vendors, they often need to see the contract but not change it. Letting them edit increases the chance of copies being made without your permission.

Microsoft 365 offers permissions like Viewer or Restricted Editor. These let people see the contract but stop them from saving, exporting, printing, or copying.

This makes for a safe way to negotiate. Vendors can check the terms without making copies or versions you don't approve.

Can we stop screen captures?

Tech can't stop everything, but dynamic watermarks can help. Microsoft 365 can put the person's email on each page of the document.

If someone takes a screenshot, their name will be on it. This makes them less likely to share it without permission and makes them responsible.

What about when someone is offline?

Managing offline access adds more control. Managers can block offline access or limit it to a time, like a week.

If you don't trust a vendor anymore, you can take away their access immediately. The next time they try to open it, it won't work.

This makes sure your company keeps control over its contracts.

Can labeling be used for hundreds of deals?

Automatic labeling makes things easier. Looking for words like Master Service Agreement or Vendor Addendum can find important documents.

When found, Microsoft 365 automatically adds the right domain-gated label.

This means you don't have to depend on everyone to make the right choice, and things are more consistent.

How do logs help management?

Companies can set rules to require a written reason to lower a document's security.

That reason is saved in the log, creating a record. This makes people accountable and stops them from changing contracts without a good reason.

How does this help during lawsuits?

Labels that are set up ahead of time make finding documents easier. Legal teams can quickly find all documents shared with a certain vendor. Instead of looking through emails, they can use set categories.

This makes responses faster and helps during disagreements.

Why move from reactive sharing to strategic governance?

Email attachments were never made to manage contracts for businesses. They were made to be quick and easy.

Sensitivity labels in Microsoft 365 change that. They create a guard that stays with the contract even if it's renamed or moved.

For legal people, this is a way to keep things professional and maintain control. It lowers the need to remember things, follow up, and manage permission lists. It changes quick file-sharing into a managed system.

Dock 365 CLM works with Microsoft 365 to keep contract management in line with domain-gated security. It puts vendor deals in SharePoint while still following labels and encryption.

Permissions based on roles, automatic approvals, and complete logs make the security stronger during drafting, talks, and renewals.

This makes sure contracts stay safe, easy to follow, and managed throughout their life. If you still use email attachments to share vendor deals, think about changing.

Schedule a demo of Dock 365 CLM to see how managing the lifecycle and domain-gated security work together to protect your contracts.

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