How Contract Lifecycle Management Helps Legal Executives Mitigate Risk
As your company’s legal counsel, you are the one entity that is involved in every step of the contract management process. Whether negotiating terms for new agreements or renegotiating your company’s position for expiring agreements , your efforts can significantly influence regulatory compliance, exposure to risk, and ultimately profitability. However, managing legal risk and compliance is impossible without an effective contract management process.
Contract lifecycle management systems offer a single, searchable, enterprise-wide contract repository to store, monitor, and manage obligations; as well as provide collaborative workflow automation that helps standardize and streamline the contract management process. Deploying a systematic approach to the development, approval, and execution of legal contracts allows you to:
Ensure Approved Language is Used in Every Contract
Instead of waiting until sales comes to you with a contract to approve, give them the ability to create standardized contracts with pre-approved language. When all contracts start from a central library of executable clauses, you control the process from the outset and keep a tighter rein on individual terms and conditions. Additionally, a central legal library allows you to set rules based on your company’s tolerance to risk. You won’t have to worry about different departments or branches using differing versions of contracts. Everything springs from one well.
Track and Automate Workflow
Automated workflow streamlines the legal review process, clearly defines roles and responsibilities, provides a traceable record, and reduces approval times. For non-standard terms or contract approval, as well as for amendments and change orders, an automated workflow provides a record for auditing and accountability.
Gain Visibility into Corporate Obligations
Contract lifecycle management creates transparency across the entire enterprise. It provides a clear view into how obligations are being met, where they are being met, and how they impact company performance metrics. It gives legal counsel the ability align policy definition to the specific language required to ensure governance and compliance.
Manage a Central Electronic Contract Repository
Consolidating contract databases and/or repositories into one central repository allows for visibility, tighter controls, more in-depth reporting and analytics capabilities, and faster response times. It can also help eliminate loss due to non-compliance and inadvertent renewal.