Risk Agent
Learn how the Risk Agent monitors contracts for high-risk clauses and suggests mitigation strategies.
The Risk Agent proactively monitors your contract portfolio for high-risk agreements that need attention. It flags concerning clauses and suggests mitigation strategies.
How It Works
The Risk Agent continuously scans your contracts and:
- Identifies contracts with high or critical risk scores
- Analyzes specific risk factors and their severity
- Generates mitigation recommendations
- Creates review actions for your team
Risk Detection
The agent flags contracts based on:
- Overall Risk Score - Contracts scored as "high" or "critical"
- Specific Risk Factors - Individual concerning clauses
- Combined Risk Exposure - Multiple medium risks in one contract
Risk Categories
The agent monitors over 25 risk factors across categories:
| Category | Examples |
|---|---|
| Financial | Unlimited liability, uncapped penalties, unfavorable payment terms |
| Legal | Broad indemnification, inadequate IP protection, weak warranty |
| Operational | Unreasonable SLAs, restrictive exclusivity, poor termination rights |
| Compliance | Missing data protection, audit right gaps, regulatory exposure |
Mitigation Suggestions
For each identified risk, the agent provides:
- Risk Description - What the concerning clause says
- Severity Level - Low, Medium, High, or Critical
- Mitigation Strategy - Recommended language changes or negotiation points
- Confidence Score - How certain the agent is about the assessment
While the Risk Agent provides valuable insights, high-risk contracts should always be reviewed by qualified legal counsel before signing.
Priority Levels
Risk actions are prioritized by severity:
| Priority | Condition |
|---|---|
| Urgent | Critical risk with active contract |
| High | High risk score or multiple concerning factors |
| Normal | Moderate risk requiring review |
Approving Risk Actions
When you approve a risk flag action:
- The contract is marked for legal review
- Risk details are added to the contract's notes
- Relevant team members are notified (if configured)
Working with Risk Flags
After a contract is flagged:
- Review the specific risk factors on the contract detail page
- Use the mitigation suggestions as negotiation points
- Track resolution status in the contract timeline
- Update the contract if terms are renegotiated
Risk scores update automatically when contracts are re-analyzed. Renegotiated contracts may show improved scores after new terms are uploaded.
Best Practices
For effective risk management:
- Review high-risk flags promptly
- Document risk acceptance decisions
- Use suggestions as starting points for negotiation
- Regularly audit your high-risk contract portfolio