How Contract Intelligence Tools Help Streamline Contract Risk Management
Organizations of all sizes need a streamlined and reliable way to manage the risks associated with contracts. Complex documents can include legally binding terms and conditions that must be read and examined carefully in order to ensure compliance with the law. Given the difficulty in managing and mitigating contract risk, legal and business teams are increasingly turning to contract intelligence solutions to facilitate effective risk management.
Contract intelligence solutions, including automated Contract Lifecycle Management (CLM) systems, Review AI, and cloud-based knowledge management tools, provide organizations with the tools needed to expedite contract risk review and management. To ensure your company is leveraging the most out of these tools, here are five ways to optimize contract risk management with legal tech.
Use Approved Contract Templates
The first step to efficient contract risk management is to start with an approved template. Rather than creating contracts from scratch, legal teams can use CLM systems to access templates in a central, cloud-based location. This eliminates extra steps and saves time, while ensuring all contracts have been approved by the legal team. In addition, the CLM system allows legal teams to quickly search for and access approved templates, so they can spend less time on manual document review.
Engineer Automated Contract Analysis
Legal tech tools, such as Review AI, can automate the contract review process by locating key terms and concepts in contracts. This tool can then cross-reference those terms against an approved clause library to determine if updates are needed. Automated contract analysis eliminates the need for manual review, saving time, while also reducing the risks of important details being missed.
Implement Knowledge Management Systems
In order to ensure contracts follow the same legal standards, an effective knowledge management system should be set up. This will allow legal teams to easily search for and reference past contract terms and conditions. Not only does this provide legal teams with the precedent they need, it also promotes consistency and reduces the risk of errors.
Empower the Business Team
By using automated legal review tools, even team members without a legal background can submit basic contracts for review. This can reduce the legal team’s workload and expedite the review process. Review AI can help to automate the process by highlighting issues of risk and suggesting updates that need to be made.
Utilize Cloud-Based Legal Technology for Execution and Maintenance
Contracts require constant maintenance to ensure they remain compliant and up to date. A cloud-based legal tech solution, such as effective CLM software, can streamline the contract management process by storing key information in one central place. CLM systems can also alert users when contracts are in need of an update, and are able to integrate with other components of an organization’s tech stack.
Conclusion
Contract intelligence solutions are invaluable in achieving efficient contract risk management. By utilizing the tools provided by legal tech, legal and business teams can work together to ensure contracts comply with the latest legal standards and requirements and that any associated risks are mitigated. In the long run, this will help save organizations time and money, while ensuring that contracts are reviewed quickly and appropriately.