Is an electronic signature legally valid?

Yes. Under the ESIGN Act (15 U.S.C. §7001) and UETA, electronic signatures are generally legally binding when intent, consent, attribution, and record retention requirements are met.

When is notarization required?

Notarization depends on state law and document function. If a state or internal policy requires notarization, follow state rules; RON may be acceptable where authorized.

What authentication level is needed?

Choose authentication proportional to risk: email for low risk, SMS or KBA for moderate risk, and stronger methods for high‑value approvals or regulated records.

How to update the charter after approval?

Issue a revised version with a new effective date, track version history, and obtain approvals from the same signatory roles; retain prior versions per retention policy.

How should signed charters be stored?

Store signed copies in a secure, access‑controlled repository with encryption at rest (AES‑256), audit logging, and the ability to export evidentiary certificates.

Can a signer revoke a signed charter?

A signer may attempt to rescind approval, but revocation depends on document terms and applicable law; maintain clear amendment and revocation clauses and consult legal counsel for disputes.

Electronic Signature
Templates
Miscellaneous
Business Security Charter

Business Security Charter

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

BUSINESS SECURITY CHARTER

Effective Date:

Company Name Company Address Security Provider Name Provider Address

RECITALS

WHEREAS, Company operates business operations, information systems, and physical premises for which reasonable and industry-standard security protections are required; and

WHEREAS, Provider represents that it has the personnel, technical skills, and resources to provide security planning, implementation, monitoring, and incident response services as described in this Charter; and

WHEREAS, the parties desire to set forth the scope, responsibilities, payment terms, confidentiality, and governance of security services in this Business Security Charter (Charter) to protect Company assets, data, personnel, and customers.

SCOPE OF WORK

Detailed Scope

The Scope of Work includes, without limitation, risk assessment, physical security measures, access control procedures, network and endpoint security controls, monitoring and alerting, periodic testing and audits, and incident response and remediation. Provider shall perform services in accordance with applicable professional standards and any documented policies provided by Company.

SECURITY OBLIGATIONS AND STANDARDS

Provider shall implement controls reasonably designed to protect Company assets and data. Provider shall, at a minimum, perform the following categories of security services (check all that apply and augment in the Detailed Scope):

Physical security and access control

Network security (firewalls, IDS/IPS, segmentation)

Endpoint protection and patch management

Incident response, forensics, and notification

Provider shall maintain written policies and operational procedures relevant to services provided and shall make summaries of such policies available to Company upon request subject to the Confidentiality provisions below.

PAYMENT TERMS

Payment Amount Payment Schedule Late Fee

Provider shall submit invoices in accordance with the Payment Schedule. Unless otherwise stated, invoices are due within the payment terms above. Overdue amounts shall accrue interest or late fees as specified. Payment obligations under this Charter are non-waivable and shall survive termination to the extent services were rendered.

TERM AND TERMINATION

This Charter commences on: and terminates on:

Notice Period for Termination (days)

Either party may terminate this Charter for cause upon written notice if the other party materially breaches any material provision and fails to cure such breach within the notice period above. Company may terminate for convenience upon the notice period provided. Termination shall not relieve either party of obligations incurred prior to the effective date of termination.

CONFIDENTIALITY

Each party (Recipient) shall hold in strict confidence all Confidential Information disclosed by the other party (Discloser) and shall not use or disclose such information except as necessary to perform obligations under this Charter. Confidential Information does not include information which is (i) publicly available through no fault of Recipient; (ii) already rightfully in Recipient's possession; or (iii) rightfully obtained by Recipient from a third party without restriction.

Confidentiality Duration (years)

Recipient may disclose Confidential Information when required by law, provided Recipient gives Discloser prompt written notice and cooperates in any efforts to seek protective measures. Upon termination or written request, Recipient shall return or destroy Confidential Information as directed by Discloser.

DATA BREACH NOTIFICATION

Notification Timeline (days)

In the event of an actual or reasonably suspected security incident or data breach affecting Company's data, Provider shall notify Company without undue delay and in any event within the notification timeline stated above. Provider shall cooperate in investigation, containment, remediation, and any legally required notifications to affected individuals or authorities.

INSURANCE, INDEMNITY AND LIABILITY

Provider shall maintain insurance coverage appropriate for the services provided, including general liability and professional liability/errors & omissions insurance. Provider agrees to indemnify, defend and hold harmless Company from claims arising from Provider's negligent acts, omissions or willful misconduct in performance of services under this Charter.

Insurance Coverage Amount (per occurrence)

Except as required by law, neither party's aggregate liability under this Charter shall exceed the total fees paid to Provider under this Charter in the twelve (12) months preceding the claim. The foregoing limitation shall not apply to liability resulting from willful misconduct or gross negligence.

GOVERNING LAW

State of Governing Law

This Charter shall be governed by and construed in accordance with the laws of the state specified above, without regard to conflict of law principles.

ENTIRE AGREEMENT

This Charter, together with any attachments, exhibits, and written amendments signed by both parties, constitutes the entire agreement between Company and Provider with respect to the subject matter hereof and supersedes all prior agreements, understandings and negotiations, whether written or oral. Any modification must be in writing and signed by authorized representatives of both parties.

Company:

By:

Date:

Security Provider:

By:

Date:

What the Business Security Charter Is and Why It Matters

A Business Security Charter is an internal governance document that defines an organization’s security objectives, roles, responsibilities, and acceptable use policies. It centralizes expectations for data protection, access control, incident response, and third‑party interactions. The charter typically aligns with applicable legal and regulatory frameworks, describes authorization and escalation processes, and sets review cycles. Organizations use it to document consistent decision rights, reduce ambiguity in security operations, and provide an auditable baseline for compliance and internal or external assessments.

The Charter’s Core Purpose in Plain Terms

A Business Security Charter provides a single, documented statement of governance that clarifies who makes security decisions, what protections are required, and how compliance obligations will be met under ESIGN/UETA and sector rules such as HIPAA and FERPA.

Which Teams Typically Prepare and Use a Charter

The charter is a cross-functional artifact used by security, legal, IT, HR, and executive leadership to align policy, operational controls, and accountability.

Security and IT teams for technical controls, monitoring, and access management.
Legal and compliance teams for regulatory alignment and contractual obligations.
Executive leadership and board members for risk acceptance and policy approval.

When correctly scoped and maintained, the charter supports audits, procurement decisions, vendor reviews, and incident response coordination.

Who Signs and Who Approves the Charter

Chief Information Security Officer

The CISO reviews technical controls, certifies alignment with security frameworks, and signs to acknowledge operational readiness. The role coordinates cross-departmental implementation, oversees training obligations, and escalates gaps to executive leadership if remediation is required.

General Counsel

The General Counsel or chief legal officer confirms statutory and contractual compliance, advises on regulatory citations such as HIPAA or state data protection rules, and signs to indicate legal review and acceptance of risk allocation clauses.

Essential Elements of a Professional Business Security Charter

A clear, enforceable charter should include scope, governance, control objectives, approval authorities, monitoring and reporting requirements, and review schedules to remain current with risks and laws.

Scope

Defines covered systems, data classes, and business units subject to the charter.

Governance

Specifies decision authorities, committees, and escalation paths for security decisions.

Control Objectives

Lists required controls for access, encryption, endpoint, and network security.

Roles & Responsibilities

Assigns duties to security, IT, legal, HR, and business owners.

Monitoring & Reporting

Describes audit requirements, metrics, and incident reporting timelines.

Review Cycle

Sets periodic review and amendment timelines, typically annually or on material change.

Required Charter Information at a Glance

Document Title: Business Security Charter

Effective Date: MM/DD/YYYY format

Scope Statement: Systems and data covered

Approval Signatures: Signed by CISO and General Counsel

Policy References: Related standards and SOPs

Review Schedule: Annual or on material change

Step-by-Step: Create and Adopt the Charter

Follow this sequential checklist to draft, approve, and roll out the Business Security Charter with clear governance and auditability.

01

Draft: Compile scope, controls, and roles in a working draft.
02

Legal Review: Have counsel confirm regulatory alignment and liability language.
03

Executive Approval: Obtain signatures from CISO and General Counsel.
04

Publish: Distribute the charter and record version control.

Typical Digital Adoption Flow for a Security Charter

Digital workflows reduce friction and create an auditable trail; use role-based routing and authentication for each signer to maintain evidentiary value.

Upload Charter: Place the final PDF or DOCX into the signing platform.
Assign Fields: Add signature, date, and name fields for each approver.
Set Authentication: Choose email, SMS, or stronger methods for each signer.
Capture Audit Trail: Store timestamps, IPs, and action history for compliance.

Key Workflow Settings for Online Completion

Configure these settings when you prepare the charter for electronic signing to balance usability and authentication strength.

Field	Configuration
Signing Order	Sequential or parallel routing
Authentication	Email \| SMS code \| KBA
Audit Options	Enable detailed completion certificates
Retention	Set archival period and export formats

Technical and Integration Considerations

Ensure the chosen platform supports required file types, authentication methods, and integrations with your document repository and identity provider.

File Formats: PDF, DOCX, HTML, Excel
Integrations: Salesforce, NetSuite, Microsoft 365
Security: AES‑256 at rest; TLS 1.2/1.3

Typical Timing and Scheduled Reviews

Define clear dates to ensure the charter remains current and that stakeholders complete required actions within prescribed windows.

Effective Date:

Date when the charter takes effect, MM/DD/YYYY.

Approval Deadline:

Signatures due within 30 days of distribution.

Annual Review:

Full review and approval every 12 months.

Incident Review:

Update charter within 30 days after material incidents.

Policy Change Notice:

Stakeholders notified at least 14 days before changes.

Representative Examples from Practice

These real-world examples show how organizations adapt the charter to their operations and approval workflows.

Optica Ventures LLC

Brian Fitzgibbons, COO, used a concise charter to centralize signature authority and streamline approvals.

The change reduced approval cycles.
This alignment improved clarity for external vendors and internal teams, creating a single reference for security obligations during vendor onboarding and audits.

Martin Properties

Tim Martin, Founder, adopted an online charter to enable remote approvals and mobile signing.

Mobile signing supported field teams.
The approach maintained compliance while reducing delays on lease and vendor approvals, and ensured signed versions were stored with an immutable audit trail.

Practical Tips for Accurate and Efficient Completion

Use consistent naming, version control, and clear responsibilities to reduce review cycles and avoid disputes over authority or interpretation.

Standardize Names and Dates

Use exact legal entity names and MM/DD/YYYY dates to avoid mismatches that can complicate audits, vendor checks, or court review.

Use Role Definitions

Assign responsibilities to positions rather than individuals where possible to maintain continuity when staffing changes occur.

Record Approvals

Keep signed PDFs and completion certificates in a secure repository with version history and access logs for easier compliance demonstrations.

Review Regularly

Schedule annual reviews and immediate updates after incidents or material business changes to keep the charter aligned with practice and law.

Common Preparation Pitfalls to Avoid

Unclear scope that omits cloud services or third-party processors, causing gaps in responsibility and control coverage.
Using individual names instead of roles, which creates approval bottlenecks when personnel change.
Failing to specify authentication for electronic approvals, weakening evidentiary value during audits or disputes.
Neglecting retention policy alignment, leading to premature deletion of records needed for regulatory compliance.

Consequences of an Incomplete or Incorrect Charter

Regulatory Penalties: Civil fines and corrective orders

Contract Liability: Breach claims and indemnity exposure

Operational Delays: Approval bottlenecks and downtime

Audit Findings: Remediation costs and repeat audits

Data Breach Risk: Higher probability of incidents

Reputational Harm: Loss of customer and partner trust

eSignature Pricing and Feature Comparison Relevant to Charter Execution

Compare vendor starting prices and key capabilities that affect execution, authentication, and recordkeeping when choosing a platform to sign and store your Business Security Charter.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies	Varies	Varies	Varies
Bulk Send	Yes (Business Premium)	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes (BAA available)	Yes	Yes	No	No

FAQs and Troubleshooting When Using a Security Charter

Answers to common legal, technical, and process questions about adopting, signing, and storing a Business Security Charter.

Need help? Contact support

Is an electronic signature legally valid?
Yes. Under the ESIGN Act (15 U.S.C. §7001) and UETA, electronic signatures are generally legally binding when intent, consent, attribution, and record retention requirements are met.
When is notarization required?
Notarization depends on state law and document function. If a state or internal policy requires notarization, follow state rules; RON may be acceptable where authorized.
What authentication level is needed?
Choose authentication proportional to risk: email for low risk, SMS or KBA for moderate risk, and stronger methods for high‑value approvals or regulated records.
How to update the charter after approval?
Issue a revised version with a new effective date, track version history, and obtain approvals from the same signatory roles; retain prior versions per retention policy.
How should signed charters be stored?
Store signed copies in a secure, access‑controlled repository with encryption at rest (AES‑256), audit logging, and the ability to export evidentiary certificates.
Can a signer revoke a signed charter?
A signer may attempt to rescind approval, but revocation depends on document terms and applicable law; maintain clear amendment and revocation clauses and consult legal counsel for disputes.

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