What is Contract Risk Management?

What is contract risk management? Contract risk management assesses a contract's maximum value through compliance tracking by identifying, managing, and minimizing the potential risks throughout the contract lifecycle. This may include loss of opportunity, legal exposure if things go wrong, and potential business impact the contract will have on the involved parties.

Contract Risk Management

Identify and manage risk throughout the contract management lifecycle. A configurable risk model helps track risks across different categories, such as financial, contractual, performance, and third parties. For procurement, use their contracts to examine their sourcing strategy to ensure they are not overly dependent on a single supplier.

On the sell-side, enforce “know your buyer” best practices to stay in compliance with international law. Look up and leverage internal data as well as external data, from sources such as D&B and Thomson Reuters, to determine risk scores, ensure proactive risk monitoring and increase visibility for stakeholders.

From procurement to sales, contracts touch every aspect of your business—and therefore can create risk from anywhere in the organization. And things are getting even more dicey with recent global disruptions that have put a strain on commercial relationships.

Yet, for many companies, identifying their most significant contract risks can be a challenge—let alone managing them. That’s why we’ve put together this infographic highlighting the top contract risks we’ve encountered while implementing our industry-leading contract management solution, including:

  • Hidden obligations
  • Missed revenue
  • Regulatory noncompliance

Access the infographic now to start your journey to better enterprise risk management through organization-wide contract intelligence.