It’s been a long day. You make dinner, put in a load of laundry, lock your doors, set your alarm and finally turn your TV on to your favorite Netflix show. You are positive that you are in for a safe and stress-free night, but how can you be sure you have taken all of the right precautions? What could be worse than waking in the middle of the night to an ear-bleeding siren because you weren’t protected well enough? What is the best and most strategic way to prevent risk?
Hopefully, by now, most healthcare companies have moved away from the paper trail of contracts and are in a more digital world. This is a good first step in the right direction. But, how can you get the most out of your digital contracting process? You have all your contracts in one place, but what about the rest of your organization? Are they using the same systems? Are you falling prey to human error? Are you doing double the work without realizing it?
Your contracts can have a major effect on your companies’ daily operations. From slowing down the productivity of your teams to increasing costs due to unmitigated risks, poor contract management can prevent your organization from being the lean, well-managed, efficient enterprise that it has the potential to be.
We’ve all been told that reading the fine print in any contract is important, as it often contains terms and conditions that could prove costly down the line, but how many of us actually closely examine the fine print – even in our own contracts?
With over 120 London Insurance Market Clients, we spend a lot of time meeting brokers and underwriters to learn about new market issues that arise. One of the key items that keeps coming up are the attritional losses that could be avoided with the right solutions to support tighter underwriting controls and a better understanding of the policies being subscribed to.
Margin Requirement reform has been a major concern amongst global financial services firms for the past two years and it’s only going to get more challenging over the next two years. You may remember we addressed the topic of uncleared derivatives regulations back in 2016 when the regulation first came into force. These rules were brought into effect to prevent a repeat of the financial crisis that occurred in 2008/9. We discussed how it’s time for banks to “buckle down” and start the repapering process for their credit support annexes.
Juggling numerous contracts at once can become an overwhelming task that can spiral out of control. Contracts can be as short as one paragraph to as long as thousands of pages, which demands the need to be continuously looked after throughout their lifecycle. It is not enough just to store data onto a centralized platform. Therefore, contract management should be viewed as a process that can be changed and improved overtime.
In today's technological world, cloud-based contracts are becoming more and more essential to enterprises. It is vital to be aware of the potential risks that may arise in the process of producing a contract. On the surface contract management can seem simple but when different components are interjected such as third-party relationships, contract management without digitization can become a challenge.
If your company does business internationally, you are undoubtedly aware of the challenges that brings to contracting. Contracts need to be reflective of the current commercial status, which is constantly changing due to changes in the world, from changes in power to currency fluctuations, new international regulations, and rapidly changing international laws.
Once a contract has been executed, what happens to it? Does the contract move on to storage purgatory, never to be seen again — or at least until there is an issue that needs to be addressed, or you need to capture some information from the contract? How do you confirm that the terms of the contract are being met, and that all the major milestones and deadlines are being adhered to? And when the expiration date approaches, what do you do about renegotiating and/or renewing the contract?