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Contract Risk Management Services-
Establishing and implementing a process of regular assessment and monitoring of contractual partnerships is essential to control costs, manage risks, and contribute to the value derived from these arrangements.
- Risk-based monitoring of these relationships can be very complex and time consuming, often requiring access to subject matter expertise, as well as commitment to regular monitoring of the contractual relationships
- Inadequate attention results in process inefficiency, control breakdowns, and incremental costs associated with “patchwork” arrangements
- Due to continuing efforts to establish adequate governance structures and maintain transparency, companies realize that these relationships play a critical role to their internal controls and risk framework
Market Insights
Factors impacting the level of risk exposure in contractual arrangements:
- Significant increase of patents, copyrights, and trademarks and the subsequent licensing of the Intellectual Property (IP)
- Increasing focus of Procurement Sourcing departments to maximize cost savings and enhance business relationships
- Outsourcing of non-core core processes (e.g. contract manufacturing, distribution of product, etc.)
- Growing number of franchise businesses and business affiliations (joint ventures and partnerships)
- Increasing trend toward globalization
- SOX and other regulatory requirements
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