Contract risk management (CRM) is a comprehensive plan for identifying and decreasing potential business uncertainties and legal liabilities regarding sales contracts with customers and procurement contracts with vendors.
Vendor risk management
Corporations often depend on hundreds of vendors to fulfill their business processes. Single sourcing puts institutions at risk by making them too dependent on one vendor. On the other hand, multiple sourcing dilutes vendor accountability, and makes vendor collaboration and coordination much more challenging.
In both sourcing models, vendor risks are high, and should be managed and mitigated through a robust Vendor Risk Management (VRM) approach.
Significant effort is required from both the organization and the third-party vendor to maximize the benefits received from the relationship, service, or product, while simultaneously minimizing associated risks. As the scale, scope, and complexity of these relationships and services increase, the related risks and the importance of effective vendor management proportionately increase.
MVLCO’s VRM team help your organization in design and implementation of a VRM program.
Contract risk management
Every day businesses enter into contracts with either their customers or with their vendors. The understanding between the parties is established through agreements, contracts or purchase orders. Many businesses are not careful in clearly defining the scope, terms and conditions and taxes. Inappropriately drafted contracts can result into increased costs, delayed payments, rejections and rework, liquidated damages, penalties, legal wrangles and some times even loss of business.
It is imperative for a business to ensure correct understanding and proper management of contracts right from the inception stage.
MVLCO can help your business to mitigate financial and legal risks arising due to improper contracts by proactively vetting important contracts and providing your organization with a framework to manage contract related risks.