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Sept. 21 — The heavy reliance on manual drafting could be an obstacle for general counsel in identifying and tracking their riskiest contracts, a Sept. 21 report by Exari suggests.
In a poll of 92 corporate counsel and compliance professionals, the contract management consultant found that almost 40 percent said they had limited or no visibility into risks during the contracting process.
Almost sixty percent of the respondents also said they struggled with the slow contract approval process.
The report, “Low Tech/High Risk,” found that more than 75 percent of the respondents usually created their contracts in Microsoft Word using some form of “cut and paste” template.
The report suggested that the heavy dependence on manual processes to create, track and modify contracts may be putting firms at risk and increasing costs.
“Organizations can’t afford to continue taking risks and overspending on contract management; business leaders and inside counsel must have complete visibility and control of their business’ contracts to make informed decisions,” the report stated. “Without a firm grasp on their obligations and liabilities, legal teams will continue to struggle in a variety of areas—from enforcing non-compete clauses to assessing client and contract-level risk.”
• missing milestones (27.1 percent);
• ensuring compliance with client obligations (27.1 percent); and
• stunted collaboration (25 percent).
The report also noted that storage practices could be hindering the contracting process. Almost half of the respondents—47 percent—said their companies are still using paper filing to store contracts.
To contact the reporter on this story: Michael Greene in Washington at firstname.lastname@example.org
To contact the editor responsible for this story: Yin Wilczek at email@example.com
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