Improving Business Performance by Reducing Contract Management Risk

Most companies have an extensive network of suppliers, contractors, ventures, alliance, partners, consultants, etc. with which they do business.  The majority of the relationships with those organizations are defined in contracts.  The terms and conditions of these contracts are legally binding.  Thus, the requirements must be followed to ensure each party is acting accordance with its obligations and commitments.

…The consequences of not complying with contracts could lead to supply chain disruptions, financial penalties, early termination, and soured relationships….

One would think that with such dire consequences companies would manage their contracts with defined business processes and systems to reliably, consistently and transparently manage contract risk.  However, that is often not the case.  Many contract sit in file cabinets, on file servers, in SharePoint, or in other document management systems.  No one tends to notice a contract issue until it’s too late to prevent an incident.

 

How about Automating Contract Management

If yes then how about evaluating Predict360 enterprise risk and regulatory compliance software?  It can be used to manage contract requirements just like a regulatory compliance requirements. It allows your company to assess the risk associated with each contract requirement to define the risk response (i.e., avoid, reduce, accept, transfer) and rate the severity and likelihood of the risk.

Best thing is you can automatically and intelligently process electronic contract documents to identify requirements and associate compliance activities (e.g., tasks, audits, inspections) to notify individuals of upcoming actions and events.

Predict360 also provides the ability to assign and prioritize requirements to responsible parties for accountability.  Most importantly, it aggregates all your contract requirements into a single source of truth that provides transparency at all levels of the organization.  This enables managers and executives to stay ahead of the contract requirements and avoid business interruptions, organization inefficiencies, and financial penalties.

Please contact us if you would like to learn more about how 360factors and Predict360 can help you improve business performance by reducing contract management risk.

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