# Contract Risk Assessor

> Source: https://bryter.com/de/use-cases/contract-risk-assessor/

The Contract Risk Assessor provides a risk rating for contracts reviewed or negotiated. By incorporating contract risk criteria, the Contract Risk Assessor is able to score the risk profile for each contract uploaded.

#### Background

Reviewing and negotiating contracts is a time-consuming and costly exercise. In most companies, contracts are still checked manually by in house legal teams to, or sometimes even disregarded opening up liability risk. Already now, this type of manual work takes up about half of a legal professional’s work week and the [workload is expected to rise](https://www.ey.com/en_gl/law/general-counsel-imperative-barriers-building-blocks) even further over the next three years. 

#### **Issues of manual contract reviewing** 

Typically, each contract includes several stakeholders, who all need to provide input, review the contract and its amendments for accuracy and agree on the legally binding terms.  

When done manually, contract reviewing creates significant overhead for all teams involved, as different versions of the agreement and redlining requires an endless loop of alignment among stakeholders. What’s more, there can be significant risks to the business in case of misalignment. For many companies this area feels almost like a “black box” without clearly defined and unified processes, audit trails and proper analytics. 

The lack of a single source of truth causes errors with potentially far-reaching consequences. As a result, legal, compliance and commercial teams get overwhelmed with each contract and start to fall behind the incoming requests, ultimately risking lucrative deals and competitive market position.  

On the other hand, contract reviewing simply needs to be done to drive commercial success and prevent lost business opportunities. 

#### **Automating contract reviewing**

The Contract Risk Assessor built on BRYTER allows legal, compliance and commercial teams to streamline contract reviewing process significantly and identify higher risk contracts immediately. For example, if a contract includes an indemnity carve out or has not been reviewed by Legal, the Contract Risk Assessor can easily identify this contract as higher risk.  

Our [**risk management software**](https://bryter.com/applications/risk-management/) offers immediate insight into the risk profile for each provision identified against the company’s risk criteria. It also helps identify what changes need to be made to the document. 

In turn, companies can speed up their response time, remove bottlenecks and provide data-driven expert guidance to all contract stakeholders on crucial contracting matters in near real-time. This enables stakeholders to address a larger volume of high-value contracts, in an automated fashion, while helping in high-risk cases on a when-needed basis. At the same time, stakeholders can fully automate the reviewing of a large volume of low-value tasks that otherwise consume a big chunk of legal teams’ time. Meanwhile, the standardized and automated contract reviewing process ensures full compliance with industry standards and regulatory frameworks.