Key contracts risk management guide
Produced in partnership with Irene Meidman of Lawyers on Demand
Key contracts risk management guide

The following Risk & Compliance guidance note Produced in partnership with Irene Meidman of Lawyers on Demand provides comprehensive and up to date legal information covering:

  • Key contracts risk management guide
  • Why you need to manage this risk
  • Top five priorities
  • 1. Recognising key contracts and assembling a contract register
  • 2. Risk assessments, audits and contract management strategies
  • 3. External impacts and changes in laws
  • 4. Loss of key contract
  • 5. Financial and cash flow risks: milestones and payments

Why you need to manage this risk

From the moment of their formation until the end of their existence, organisations have to deal with a large number of contracts at any given time. These contracts may vary from basic verbal agreements such as simple stationery purchases, to multi-page volumes drafted by lawyers, outlining parties’ responsibilities and obligations, warranties, liabilities and indemnifications. While all contracts carry some element of risk, some of them require much closer attention and management since they are essential to the continuation of the organisation’s day-to-day affairs. In fact, such contracts are so important, that they have direct impact on the business’s current and future success and the loss of one of those contracts could be expected to materially impair the organisation’s performance or even cause the organisation to fail.

Top five priorities

The table below identifies five key priorities in relation to the creation, execution and management of key contracts and explains why businesses need to pay close attention to these areas and ensure continuous risk assessment and management.

Each priority is explained in further detail in the main body of this risk management guide, including a series of mini action lists that:

  1. suggest action points for each priority area

  2. encourage you to record your level of compliance against each action point, and

  3. signpost relevant