The Contract Risk Assessor provides a risk rating for contracts reviewed or negotiated. By incorporating business’s contract risk criteria, the Contract Risk Assessor is able to score the risk profile for each contract uploaded. This not only ensures a more consistent approach to agreeing contract terms but also mitigates the risks of agreeing to provisions which fall outside of acceptable terms. The Contract Risk Assessor can also be integrated with contract analysis tools such as Kira, Luminance and RAVN to identify key provisions in a negotiated document and determine – using a sophisticated customizable risk scoring model – the risk profile for each of the terms identified. This offers professionals as well as commercial teams with an overall risk rating for their contracts. The tool can be easily adapted and customized to accommodate risk criteria for all manner of contracts (e.g. supply agreements, procurement contracts, intellectual property or trademark agreements, etc.).
Reviewing and negotiating contracts can be a time consuming and costly exercise. In most companies, contracts are still checked manually to identify areas of risk. What’s more, there can be significant risks to the business if you miss something. For many companies this area feels almost like a “black box” without clearly defined and unified processes, audit trails and proper analytics.
The Contract Risk Assessor allows to streamline this process significantly and identify higher risk contracts immediately. For example, if a contract includes an indemnity carve out or has not been reviewed by legal, the Contract Risk Assessor can easily identify this contract as higher risk. This offers immediate insight into the risk profile for each provision identified against the company’s risk criteria. It also helps identify what changes need to be made to the document and can automatically produce a revised contract to send to the other party.
How it works
Define risk criteria
By incorporating your set of acceptable risk-criteria for contracts, the Contract Risk Assessor is able to score contracts based on how well they met that criteria. For instance, contracts which more closely reflect terms acceptable to your business will be identified as less risky.
Through a customizable, user-friendly and interactive questionnaire (reflecting your business’s contract risk criteria), the user answers a standard set of questions which informs the risk profile for each of the provisions in the contract. This process can also be customized to align with your workflow. For instance, once completed, you can automatically generate a house-style version of a risk report and a contract mark-up as well as automate the escalation of key issues to other business areas, such as the legal department, via e-mail.rnAdditionally, by integrating with a contract analysis tool, key provisions in the contract can be displayed in the Contract Risk Assessor interface to speed up the review and assessment of each provisions risk profile.
A dashboard allows those administering the matters or workflow to see at a glance the number of contracts assessed using the Contract Risk Assessor to date and the time taken to do so to get a more in-depth view on the terms and risks commonly identified by the Contract Risk Assessor logic and scoring system.