Reducing Contract Risk Today Reduces Corporate Risk Tomorrow

Third Party Management

  • June 12, 2017
  • White Paper
Third Party Contract Management Process

Organizations increasingly work with third parties worldwide. When starting contract negotiations, a company’s legal team must understand the business use for the product or service being negotiated. Unfortunately, resource constraints can often result in a “one size fits all” approach to contracts that may or may not address the specific risks of the relationship. This document offers a new approach to contract risk management that provides a consistent, systematic method of engaging and informing the legal team of risks posed by the third party relationship.

5 Things You Will Learn About Contract Risk:
  • Contract Risk Management Challenges

    Typical contract risk management processes face two challenges: a lack of awareness of risk on the business side and a lack of understanding of the business process by the legal department when considering a third-party contract.

  • Limitations of Contract Lifecycle Management Systems

    CLM systems are most often one size fits all, meaning they fail to address individual third-party risk revealed during due diligence and assessment.

  • Contract Risk Management Opportunities

    The goal of contract risk management is to protect a company from risk by addressing all the questions that surround engaging a third party, from assuring quality to uncovering any citations for fraud.

  • Automating Contract Risk Management Processes

    Automating many contracting processes ensures that all steps are taken to assess existing or potential risk and to protect the company.

  • A Systematic Approach to Ensuring Contracts Account for a Relationship’s Inherent and Residual Risks

    Completing due diligence ensures that third-party risk is addressed in the contract and that all stakeholders are aware of measurement programs to monitor that risk.

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