Legal / Risk / Compliance
If individual departments are allowed to drive their own contracting processes there are a number of complications that result:-
– The Legal Department has to deal with tens or hundreds of different contract creation, approval, storage, renewal and commitment management processes.
– Legal has to review every term and clause in every contract, because there is no system to enforce standard terms where appropriate no contract lifecycle management.
– There is little or no understanding of enterprise risk, lost revenue or cost savings opportunities based on sub-optimal management of the creation, negotiation, approval, storage renewal, and commitment management processes.
– There is no central contract repository across organizations – legal and business professionals waste a lot of time searching for the most up-to-date copies of contracts.
– There is little or no visibility into cross functional overlap around products, customers, and business partners, for example buying and selling to the same company as both a customer and supplier.
Mitigation of Risk Management
Contracts may contain risk elements such as significant contract value, contingencies, and long-term commitments. It is an absolute requirement to be able to track and report on these risks. Key contractual commitments must be proactively monitored with alerts and notifications being sent to the respective individuals within an enterprise.
Management at the Clause and Obligation Level
Many organisations lack the ability to even locate a required contract. It may not exist in its final electronic form but perhaps only as the signed physical original document now hidden in a long departed employee’s filing system. Not only must this contract be traceable and accessible in a controlled manner, but the real value of this document is contained within the details of its clauses and obligations. This is the true value exposed by the deployment of a web-based Contract and Compliance Management System such as that of Symfact.
Questionnaires: Reduce Time Demands on Compliance Officers.
In cooperation with Symfact, leading experts in compliance, legal and forensics have compiled questionnaires that are in line with the state-of-the-art of the concerned law enforcement agencies (therefore providing optimal legal coverage). The questions are designed and combined in a way that allows the application of a specific risk assessment matrix for each business partner contrary to the less insightful approach of relying simply on generic risk factors only (such as country, industry, type of services provided). By effectively outsourcing the initial data gathering to the actual business partners via a self-assessment electronic questionnaire Compliance Officer or Legal Counsel overhead is minimized.
Third Partner Integrity Management.
Verifying business partners is of strategic significance. It is of great importance to ascertain exactly with whom you work otherwise repercussions may negatively impact both reputation and revenue. The aim of any review must be to obtain a risk assessment for all business partners based on coordinated compliance and integrity criteria. The Symfact solution guarantees audit-compliant documentation of all procedural steps including transparency of the results and of the associated decisions. The solution includes not only the necessary technology platform but also online access to data systems providing risk screening assessments and due diligence services.