Knowledge Articles > 4 Factors to Help Avoid Unnecessary Risks in Contract Management

4 Factors to Help Avoid Unnecessary Risks in Contract Management

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4 Factors to Help Avoid Unnecessary Risks in Contract Management

Why risks in contract management should be avoided

Mismanagement and negligence can lead to organisations putting their contract management processes at risk of becoming inefficient, ineffective and ultimately increasing the potential of failure. By addressing the key factors that contribute, organisations can avoid unnecessary risks and ensure they maintain best practices throughout the entire contract lifecycle.

Table of Contents

Identifying Risks in Contract Management 

Contract lifecycle management helps organisations avoid unnecessary risks and costs that could otherwise threaten their business. 

Key risks throughout the contract lifecycle include: 

  • Unmanaged contract data 
  • No visibility on key party involvement 
  • Inaccurate reporting 
  • Missed or late renewals 
  • Insufficient contract performance monitoring. 

These risks are avoidable by adopting best practice contract lifecycle management. 

Not for profits, NGOs, local councils, and commercial organisations who rely on a portion of their investment from government funded programs face the heaviest burden of all as accountability and transparency requirements are even greater. 

Avoiding unnecessary contract management risk starts with addressing 4 key critical factors: 


Managing Contract Data 

Improving contract data management is fundamental to achieving successful contract lifecycle management. 

To get started it is critical to unify all contract data in a single system to manage all contract details and documents, contacts, and payment information. 


Consistent Business Processes 

Organisations need to introduce and standardise workflows for business processes. This removes the risk of ad hoc processes. With consistent business processes contract managers can exert more effective visibility across the contract lifecycle and all parties. 

To be best practice, organisations must find the balance between standardisation and reflecting “how work is done.” 

Automating Contract Monitoring 

Automation improves administration while eliminating risks like delays, missed renewals and payments. Monitoring provides warning to contract managers before bottlenecks occur. Efficiencies are gained from the system recording milestone achievements, triggering payments, and tailoring data for individualised reporting for stakeholders. Through automation, contract managers gain control of their roles and work, rather than it controlling them. 


Eliminating Siloed Systems  

Contract management teams often use a variety of different software systems. Once contracts pass to other business areas or external parties more systems are involved. Disparate systems introduce risks like data contamination, inconsistent processes, and inability to automate. Contract lifecycle management must integrate to other core business systems to ensure data is shared, up to date and tracked. 


Why It Matters  

Identifying, assessing and rectifying risks in contract management will dramatically improve the quality of service, communications and outcomes to make business processes more efficient and positively affect brand reputation. 


Risk Management


Enquire Lifecycle Management 

Reducing unnecessary risks in contract management is easier and more cost effective than ever and the results are impactful. 

With Enquire Contract Management government, foundations, NFPs, NGOs and other organisations benefit from in-built best practice to manage contract risk while managing grants, scholarship funding or other funded programs. 

Tactiv Support Team

About Enquire

Enquire reduces the administrative burden of doing good, while increasing social outcomes. Manage funded projects and social investments with automations and configurable business process workflows to generate impactful outcomes that scale.

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