90% of Information in Contracts is an Untapped Risk Management Goldmine
Bold new webinar, featuring Senior Analyst Alla Valente and CLM Futurist and Agiloft Chief Product Officer Andy Wishart, outlines how top enterprise organizations are using CLM to transform their ability to manage risk
Wishart unveils 4 critical steps the enterprise must take to pivot from efficiency to robust risk management and resiliency with CLM
Long the hero of bringing operational efficiency to contract management, back-to-back global crises have revealed one of the most critical superpowers of Contract Lifecycle Management (CLM) technology: Risk Management. In a bold new webinar released today by CLM leader Agiloft, guest speaker and Senior Forrester Analyst Alla Valente and CLM Futurist and Agiloft Chief Product Officer Andy Wishart highlight that while only 10% of language in contracts is focused on what’s being delivered, when, and for how much, the other 90% is a goldmine of business-critical intelligence, dedicated to what happens when things don’t go as planned.
“This year, it seems we’ve been moving from one global crisis to another, and ‘things not going to plan’ has become the new normal,” said Valente in the webinar. “What many organizations have failed to realize is that they can tap into that 90% in the contract to help them mitigate risk. When things don’t run smoothly or unforeseen event occur, contracts can help firms to understand what the next steps and their options are, to identify and hedge any downside risk. CLM is uniquely placed to offer the insights the modern, agile enterprise needs.”
Managed effectively, that contract data provides teams with critical line of sight for managing risk, which many leading enterprise organizations have only just begun to harness, as Valente explains: “Contracts are how you manage the ecosystem of business, they are the connective tissue of your company with your ecosystem of vendors, suppliers, partners, and customers, with whom you do business. Those that truly harness the information hidden in their contracts to manage risk and move to that maturity phase of using their CLM system, are the ones that will lead the market by demonstrating their agility and ability to protect their organization.”
While highlighting the criticality of CLM in ensuring contracts are managed efficiently, Wishart also stresses that tapping into the limitless intelligence of contracts can help businesses to understand who is responsible, who is liable, who is going to do what and at what cost, and that having that information at your fingertips is the biggest power of a CLM. “The criticality for companies to manage risk in the face of geopolitical, regulatory, or economic swings has never been more acute,” said Wishart. “Having a single solution to manage every obligation at your fingertips—to be able to get out of a country or shut down a facility with Tweet Shift agility—is the true strategic value of CLM, beyond just managing the operational efficiency of processing contracts.”
Wishart continues: “The enterprise needs to move beyond the foundational stage of digitizing contracts and automating their contract management processes, to connecting the data that is hidden in their contracts to key people and processes across an organization, so that, in the right systems and processes, that contract data can be transformed into business-critical intelligence that ultimately delivers more strategic value, ensuring contract data is acted upon and delivers the intelligence to optimize wider business outcomes.”