The security stakes rise when companies use SaaS for human resources management or other functions that include sensitive information like Social Security numbers or home addresses. You should take these four steps to ensure that your data stays secure.

1. Perform a security audit. It’s essential to conduct audits of all prospective SaaS providers. “In some cases, their security may be better than your own, but you have to make sure of that,” says H.B. Fuller CIO Steven John. “Do your due diligence and make sure they have the highest standards.”

2. Know when SaaS isn’t right for you. “If you’re a government entity that requires all your data to remain on-site, SaaS can’t help you there — or if your data has to stay in country,” says Ray Wang, an analyst at Forrester Research.

3. Trust the experts. If a SaaS provider has a security breach, it can be sunk as a business, so SaaS vendors tend to be highly motivated to make sure data is secure. “But again, I would never take that at face value, so you have to do the audit,” says Jennifer Roberts, a supply systems manager at Sonoco Products.

4. Get it in writing. If the business unit is leading the implementation, ask for the vendor’s security protocols ahead of time and bring in IT, Roberts says. Then write security protocols into the contract. “It should be a joint decision between IT and business,” she says.

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