Risks inherently are part of business operations and can have a devastating impact on business continuity, brand reputation, financial loss, cash flows, or/and loss of customer trust, if not managed pro-actively.
Companies with manual contract management processes lack the visibility necessary to proactively identify and manage contract risk on an ongoing basis. This raises a number of challenges:
- Onboarding of vendors, channels, and customers is fragmented and not standardized, hindering compliance with stringent “Know Your Customer” (KYC) and anti-money laundering (AML) regulations.
- With the involvement of multiple departments and no seamless collaboration, missing information may lead to inaccurate risk assessment and risk categorization
- One-off risk assessments fail to continuously monitor third parties for performance against contractual deliverables in terms of quality, quantity, and timeliness, leading to leakage and post-execution noncompliance