Assessing & managing contract risks

Contracts inherently have numerous terms and conditions for compliance, including performance, deliverables, timelines and legal considerations.

Managing contract risks means identifying and controlling factors and potential threats that may have an impact to the successful delivery of the contracts, products or services. Risks can relate to many aspects of the contract, including changes in pricing, timeframes, requirements and processes.

Of all contracts being executed, approximately 30% are deemed mission critical in terms of compliance.

Contract clauses that relate to rights of termination, cancellation deadlines and usage restrictions, can present a high risk to business operations.

framework will provide a real-time overview of all risks associated with supplier relationships and contractual obligations.

Through reporting and analytical capabilities, companies can gain intelligence around contract data to effectively assess & mitigate corporate risks.

Manage contract risks - framework provides the ability to create unlimited user fields of all types and group them by title. Contract risk and performance information can then be stored against the contract and easily reported on.

Track contract milestone dates
Each contract contains a number of important dates and timeframes that are essential to the successful delivery of the contract. Failure to manage these risks can result in penalties and possible contract termination.

With framework, notifications can be set against various contract dates and activities. framework provides email notification on important milestone dates, eliminating the risk of missing them.

Monitor contract changes
Over the duration of the contract, many aspects of the contract may change in terms of price, quantities, timing, delivery, changes in process etc.

framework will provide a full and accurate view of any changes that affect your contracts. It can cater for contract variations, as well as create and manage schedules to contracts.

Manage supplier risks
Suppliers will have been assessed and scored by your procurement team based on a variety of metrics often including Political, Economical, Social, Technical, Legal and Environmental factors (know as the PESTLE model).

As Corporate Social Responsibility in Procurement is high on everyone’s agenda, tracking this information to ensure suppliers adhere to your procurement policies is important.

 

Contact us for more information about how framework can help you!