Managing the risk, opportunities and untapped revenue hidden within your contracts
Contracts are the essential constituent of any business – with regulatory requirements, risk management, and cost control high on executive agendas, many companies are looking for new ways to manage contract content, streamline contracts management, and enhance visibility and control.
When you think of contracts management, I’m sure that you typically associate it with controlling the overall lifecycle of contract. This is of course extremely important, but another key element is in managing and understanding the risk, untapped revenue and other cost savings that can remain hidden within your contracts database – especially if that database crosses multiple document repositories. This is where the importance of contract analytics as part of a holistic contracts management process is essential.
Better ways to manage contract content
Think for a moment about all of the events that could potentially affect your business – everything from staff and personnel issues, company mergers and acquisitions, to changes in industry regulations and beyond. In any of these scenarios the best response is to have a detailed understanding of what is contained within your existing contracts; analyzing the obligations and risks within your contracts, and always making sure that they reflect the current environment in which you are operating. This of course begs the question – is it even humanly possible to manage that massive amount of legal documents? Manually, of course not. Which is why platforms have been developed that enable you to quickly access your contracts and understand the unique terms within any given context.
As an example, in a traditional merger or acquisition scenario, your company will be faced with the daunting task of efficiently and accurately updating hundreds if not thousands of contracts, operating procedures and other procedural documents. Using time-tested, manual processes means investing in a team of people and months of manual, highly error prone, effort. The same applies to many other similar scenarios, including changes in regulation. For example, the new International Financial Reporting Standard 15 (IFRS 15) regulation means that organizations now have to be able to show exactly what financial information lies in their contracts. This covers things such as customer contracts, performance obligations, invoices, purchase orders and payments. You need to ensure that this information is included within your contractual documentation, and if called upon by an auditor you need to be able to recall it quickly and accurately. Do you have a system which enables you to search these terms within a particular context? If not, then beware. The fines for failing to comply with regulatory requirements can significantly impact the success of your business.
The truth is though, until recently the no-one was really able to effectively deal with these issues due to the lack of proper technology. This is why vendors, such as Infinote, have created solutions that incorporate cognitive and predictive analytics to help further advance contracts management technology. And why leading analysts such as Gartner have recognized this.
Ensure efficient contracts management & regulatory compliance with Infinote
Infinote’s unique search capabilities enables users to display content within a particular context and bring structured and actionable results, delivering 100% accuracy during the analysis and update of contracts. Infinote also enables you to ensure your compliance with industry regulations by automatically generating audit logs detailing every change made to each document. With large change sets becoming ever more common, businesses are able to save millions of dollars in labor costs and eliminate the risk associated with inconsistently updated documentation.