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Poor management of contracts and deviations from industry as well as company norms can substantially increase the risk exposure of the company and could cause immense damages. Therefore it is crucial for companies to identify the accompanying risks for better decision making and administration of their business.

Contract risk scoring is a systematic approach of evaluating the risk associated with a contract, boiled down to each clause/section in the contract and each of the sub-points within that clause. For example, if the company norm is to have a Professional Liability insurance limit of $2,000,000, but the contract that was executed had only a requirement of $1,000,000, this risk needs to be identified and “scored” in the risk profile of the contract.

Brightleaf understands the importance of various contractual risks and their effect on your business. As different businesses are exposed to different risks, we spend time with our clients to understand their specific risks profiles and define the standard risks assessment scale, customized to each client, against which all their contracts are assessed and scored for the final contract risk score matrix.