Question

what are some know contract risks? What does it mean? Also, what is the best way to manage contract risks?

Answer 1

Contract risks are the risks associated with the failure to follow a contract . These risks are common in organsations as they deal with a number of contracts . Some of the contract risks are failure to adhere to some rule , failur to clear a payment on a date, confusion regarding a clause in other departments etc., While some of these risks are easily solvable, some are higly risky.For example failure to clear a payment or dispatch a material by the decided date in the contract migh tlead to legal action against the company or person.

These risks can be avoided by maintaining a clear and efficient system to handle these contracts. Before signing the contracts this system must study the whole contract . Important dates must be marked or entered in a system so that no date is missed. A single department must handle these contracts so that confusion does not arise.