Contract risk management is the process by which organizations identify and assess risks and manage contracts to limit liability or other harm to the company. The objective is to limit the company’s exposure to loss and ultimately to protect the organization’s assets.
All companies face risk daily – it’s a normal and acceptable part of business. The issue is to eliminate unnecessary risks while recognizing remaining risks and managing them appropriately. An effective contract management process is instrumental in this regard. Below are a few examples of beneficial contract risk management actions a company should consider:
The risks described in these examples, and lots of others, can be managed with the many contract management features provided by ContractSafe contract management software.
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