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PLAYBOOK TEMPLATES

Security Addendum SOC 2 Compliance

A Security Addendum & SOC 2 Compliance Agreement supplements core contracts with detailed cybersecurity, audit, and compliance obligations. This playbook provides strategies for negotiating risk allocation, incident response, and certification evidence.

Data Security & Privacy

Why This Matters: Strong security and privacy controls reduce the risk of data breaches and regulatory fines, safeguarding reputation and minimizing legal exposure.

Negotiation strategy

If you're the Client:

Ensure that the contract includes comprehensive data security measures and compliance with applicable regulations. Negotiate for regular security audits and clear breach response protocols.

If you're the Vendor:

Focus on implementing feasible security measures that align with industry standards. Ensure that responsibilities are clearly defined to avoid undue liability.

Essential elements

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Data Security Measures

Technical and organizational protections.
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Compliance with Regulations

Adherence to applicable laws.
3

Breach Response

Notification and cooperation protocols.

Action framework

ACCEPT

Propose edits to include specific encryption standards and audit requirements.

EDIT

Reject clauses that lack clear allocation of responsibilities or breach response procedures.

ADD

Add clauses for jurisdiction-specific compliance and detailed security measures.

PRO TIP

Regularly update security measures to align with evolving threats and regulatory changes.

Real-world examples

FAVORABLE

Comprehensive Data Security Clause

"The parties shall implement and maintain appropriate technical and organizational measures to protect personal and sensitive data against unauthorized or unlawful processing and against accidental loss, destruction, damage, alteration, or disclosure."
NEUTRAL

Basic Security Measures

"The parties shall implement basic technical measures to protect data, including encryption and access controls."
UNFAVORABLE

Insufficient Security Provisions

"The parties agree to use reasonable efforts to protect data."

Alternative scenarios & positions

High-Risk Projects

For projects involving sensitive data, enhance security measures and require more frequent audits.

Cross-Border Data Transfers

Ensure compliance with international data transfer regulations and include specific clauses for data handling.

Small Business Contracts

Simplify security requirements while maintaining essential protections to accommodate limited resources.

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