Tailor a Risk Profile for your Contracts

All contracts, by their very nature, mean that the company is taking a potential risk, otherwise a contract wouldn't be required. As a contract manager creating a ‘Risk Profile’ for each contract ensures that you have the tools in place to monitor and analyse contract risks, and react to any situation that could arise.

Potential risks:

• Automatic renewal
• Automatic cancellation
• Changes in pricing
• Supplier financial status
• Customer financial status
• Suppliers negating T&C’s
• Customers negating T&C's
• Depreciating contract value
• Altering business requirements
• Reliant on other contracts
• Usage restrictions
• Over complex T&C’s

Framework stores all the relevant contract liabilities within the system providing the management controls and greater visibility into contractual risks, leaving no threat unprotected and therefore improving the management and performance of contracts.

Certain fields, such as milestone dates of either cancellation or renewal periods are held in the system as standard, with the option to add unlimited user defined fields to further tailor the application to a company’s unique business requirements. These user defined fields can be created and grouped according to specific types and the criteria they hold.

The easy to use reporting facilities of Framework provides dynamic management reports allowing contract managers to make better and more informed decisions.

Framework provides a real-time view of all risks associated with contracts,
suppliers and customers.

Through effective reporting capabilities within the contract management system, companies will gain contract data intelligence allowing them to effectively assess and alleviate contract risks.

Are suppliers the biggest risk?

With the current economic climate not easing up, the financial and production viability of suppliers could be a major concern for your business. However, through effect supplier management and pro-actively reviewing opportunities, managers can devise effectual contingency plans.

Using the PESTLE (Political, Economical, Social, Technology, Legal and Environmental) model to assess suppliers the risk posed against your company can be greatly reduced. Each of these factors can be added as fields within framework which includes the flexibility for administrators to add their own ratings for in-depth assessment.