What business risks arise in the absence of a contract management system?
A brief listing of potential business risks in the absence of a contract management process and their impact:
- Unevaluated content risks of contracts
By the existing possibility to evaluate contract risks in the context of the contract and by regular audits, you can introduce
a pre-warning stage into the VM process.
Failure to meet contractual deadlines such as option or notice periods
You can also manage contract-relevant dates in a deadline book, but for several hundred contracts a digital task and deadline management is certainly the better way.
Insufficient processing due to intransparent approval / release process
When you set up an approval/release process, no process remains "stuck" in the system. You can inform yourself at any
time about the documented status of a contract creation or administration process or receive information by e-mail.
Lack of actuality / distributed information status
If not all contract information is up to date, the risk analysis cannot correctly assess the company's consequences.
Difficult finding of contracts
If all contract-relevant information is not available at a central location, the compliance process is not ensured.
Loss of contracts/components of contracts
The violation of the duty of care represents a violation of the legally required documentation and storage obligation.