How to Find (Big) Hidden Contract Risks
What's it worth for your company to stay off the front page of the Wall Street Journal? We're not talking about positive press here, but rather the negative press that comes with big supply chain disruptions and compliance lapses. The type of events that not only cost tens or hundreds of millions of dollars in bottom line loss, but also cost hundreds of million or billions of dollars in top line losses through damage to a brand's reputation.
Ouch.
Hidden fault lines in your contract obligations
The intersection of contract invisibility and risk management creates deep fault lines below the surface of most large companies. These fault lines are often hidden deep in your contract obligations and the underlying processes and systems used to manage these contracts throughout the contract lifecycle. These types of contract risks are not specific to buy-side or sell-side applications. They cross the entire gamut of contract types including non-monetary contracts, like employment and IP contracts.
More than 80% of business transactions depend on contracts
Poorly executed contracts introduce significant exposure. Identifying and managing contract risk is critical for making correct decisions. Big enterprises are generally mature in evaluating contract risks when negotiating, but rarely have the capability to effectively monitor them once those contracts are in force. That's why it's important to consider the risk profile of contracts, individually and collectively, throughout the contract lifecycle.
The big question is: what is your company's contract risk exposure?
Most instances of contract risk and exposure, both pre and post-execution, are due to insufficient visibility, velocity, standardization and compliance. We have created a simple contract risk assessment tool that asks you a series of questions to score your risk across these major categories. In less than five minutes you can generate a free, personalized report. Your report will include pages of useful info on common sources of exposure and mitigation strategies.
Take the risk assessment to learn how:
- Missed commitments, expires and other contract milestones can result in unnecessary fees and missed savings.
- Contract visibility must extend across multi-tier supply chains.
- Contract visibility leads to better supply chain analytics.
- Executing a contract in one week versus three plus weeks can be a game-changer.
- Leading firms cope with non-standard contract language, variation in templates, and maverick contracting.