Any risks in the contract received from the counterparty are automatically assessed and rated. The functionality is part of Weagree’s AI-driven ‘automated contract review’. The risk rating and assessment facilitates a quick oversight in the contractual pitfalls inherent to the received draft contract. Along with the automated contract analysis, every relevant provision is assigned a risk level, identifying the nature of the risk.
The risk levels will force a decision whether a contract clause is acceptable or not: a provision as automatically reviewed is either in line with the corporate contracting policy, acceptable (but not the preferred option), unacceptable for introducing a high risk or exposure, or a deal breaker. This is visualised by using coloured dots in both the reviewed contract and the contract overview (enabling a contract portfolio analysis). If a certain contract provision was not automatically found in the contract, the contract field will be marked as a contract anomaly (red flag).
The risks are assessed on the basis of the own contract position (e.g. customer, licensor, service provider, seller). The admin can define which types of risks are to be distinguished: on the admin dashboard, the types of risks can be defined (e.g. operational risk, financial risk, non-compliance with laws, non-compliance with GDPR, reputation risk, supply chain risks). For a congtract portfolio analysis, the end-user has the possibility to select which clauses are to be shown in the contracts portfolio overview; and the overview lists the contract (meta) data plus the risk colour indicator.