A copy of this guide is available for download from ContractWorks, here.
Contracts are designed to protect your business interests, but they can also leave your organization vulnerable when not managed correctly. If you don’t know the status of your current agreements, you’re leaving your organization open to a whole host of potential penalties and liabilities, both financial and legal.
When you deploy a more effective contract risk assessment strategy, you and your company can avoid some of the hidden liabilities and expenses that can lurk within your contracts, like auto-renewals, deadlines, NDAs, and more.
With An Introductory Guide to Contract Risk Assessment, you’ll learn how to deploy an effective contract risk assessment strategy so that you and your team can tap into new opportunities, boost revenue, accelerate stalled deals, and — most importantly — analyze, measure, and score your contract terms to identify risks, maintain compliance, and improve operational oversight.
Start with a Plan
At the most basic level, the execution of any contract subjects your company to risk: that one side to the agreement will not perform as stipulated, that an important milestone will be missed, or that an overlooked clause will create unforeseen duties or liabilities. The mishandling of contracts can cause a great deal of harm, and although there is no way to completely eliminate the risk associated with contracting, there are certainly a number of steps that companies can take to mitigate the likelihood, as well as the impact, of a breach or other misfortune.
To begin any successful contract risk management strategy, you should begin with these four simple steps:
- Assess the Current State of Your Contract: what do they contain, where are they located, what is their status, and who is tracking this data?
- Perform an Audit: Make sure all contracts are complete, signed, and tagged appropriately
- Measure Your Risks: identify all stakeholders and take note of key clauses, milestones, and potential points of contention
- Create a Compliance Plan: identify, assess, and prioritize your risks and create a risk matrix to establish a response plan
Strengthen Your Business
By introducing comprehensive oversight to better manage contract risk, your company will be able to not only strengthen existing business relationships but to stay ahead of some of the typical pitfalls and liabilities that can derail even the most basic negotiations. Whenever a contract comes to life, it automatically creates benefits and risks. By identifying key terms that govern contract management and establishing a step-by-step process to audit your current operations, you can develop an effective risk assessment and response strategy that will protect your organization and keep your contracts up-to-date and compliant.
Utilize the Right Technology
New technologies can help you gain a better understanding of your organization’s contract risk by helping you define action items in your existing contracts as well as allows you and your team to develop strategies to better manage and streamline tasks for greater accountability and oversight. The key is to find a contract management solution that aligns with your company’s contracting goals and objectives and taking full advantage of all that the particular solution has to offer.
Contract Management software can often provide that allows you to delegate and control access while also tracking documents throughout their lifecycle. Tracking documents in an Excel spreadsheet or other manual solutions lack vital security and efficiency features. A robust contract management platform, on the other hand, is essential to manage risk and capture the value hidden inside contracts. In fact, implementing a comprehensive and specialized contract management system can increase a company’s compliance by up to 57%.
Start Strategizing Today
The Legal Counsel’s Guide to Contract Risk Assessment, you will get a simple guide designed to help you initiate your organization’s contract risk assessment and strategy. By identifying key terms that govern contract management and establishing a step-by-step process to audit your current operations, we will provide you with a straightforward guide you can follow no matter what the size of your organization or contract database. You’ll also learn:
- How Assess the Health of Your Contracts
- Methods for Allocating and Identifying Risks
- Best Methods for Creating a Contract Compliance Plan
- How to Develop a Response Plan to Protect Your Assets
Risks arise whenever a contract is created. When you don’t know the terms and conditions that lurk within your contracts, you leave your organization vulnerable. At the same time, keeping track of your contracts, and the length of time needed to create, save and manage your contractual agreements can be overwhelming. That’s why it is so important to introduce organization and accountability into all your processes.
Ready to see how establishing a risk assessment strategy and scheduling periodic risk assessments can your stay on top of all the liabilities, obligations, and opportunities that lurk within your contracts? Download your complimentary copy of An Introductory Guide to Contract Risk Assessment today!