Understanding the risks in the contracts and its mitigation is important for all organizations hence effective Risk management is vital for success in their commercial activities. and contract professionals are being engaged in growing numbers to identify and access the risks in their projects and activities. As risks could affect the financial strength of entire organizations, it is absolutely essential for organizations to review and analyze potential risks involved in their activities prior to implementation.
Risk mitigation is today’s corporate obsession. As an integral corporate component, contracts professionals are needed to identify and assess the levels of risk associated throughout the life of a project. Risks could positively or negatively affect a company’s financial bottom line or reputation. Before a company bids a contract or administers a subcontract, teams containing a contract professional review and analyze potential risk to the company.