Understanding Risk Scores
Learn how DealView calculates contract risk scores and what they mean for your portfolio.
DealView assigns risk scores to contracts based on AI analysis of their terms. Understanding these scores helps you prioritize reviews and negotiations.
Risk Score Overview
Each contract receives:
- Overall Risk Score - 0 to 100 numeric score
- Risk Level - Categorical assessment (Low, Medium, High, Critical)
- Risk Factors - Specific issues identified
Risk Levels
| Level | Score Range | Meaning |
|---|---|---|
| Low | 0-25 | Standard terms, minimal concerns |
| Medium | 26-50 | Some concerning clauses, review recommended |
| High | 51-75 | Significant issues, negotiation recommended |
| Critical | 76-100 | Major concerns, legal review required |
Risk scores are relative to typical B2B contracts. A "high" score doesn't mean the contract is bad - it means certain terms may not favor your interests.
How Risk is Calculated
DealView's AI analyzes multiple factors:
Financial Risk
- Liability limits (or lack thereof)
- Indemnification scope
- Penalty clauses
- Payment terms
Legal Risk
- IP ownership clarity
- Warranty limitations
- Dispute resolution terms
- Governing law
Operational Risk
- SLA requirements
- Termination conditions
- Exclusivity clauses
- Assignment restrictions
Compliance Risk
- Data protection provisions
- Regulatory requirements
- Audit rights
- Certification obligations
Risk Factors
Each identified risk includes:
| Element | Description |
|---|---|
| Factor Name | Type of risk (e.g., "Unlimited Liability") |
| Category | Risk category (Financial, Legal, etc.) |
| Severity | Impact level (Low, Medium, High) |
| Description | What was found in the contract |
| Mitigation | Suggested resolution |
Viewing Risk Details
On the contract detail page:
- Click the Analysis tab
- Scroll to Risk Assessment section
- Click any risk factor for details
- View the contract language that triggered the flag
Common Risk Factors
High-Impact Factors
- Unlimited liability exposure
- Broad indemnification requirements
- Automatic renewal without notice
- Unilateral termination rights
- Assignment without consent
Medium-Impact Factors
- Short cure periods
- Limited warranty terms
- Restrictive non-compete clauses
- Ambiguous IP ownership
- Missing data protection provisions
Focus negotiation efforts on high-impact factors first. They represent the greatest potential exposure.
Improving Risk Scores
Risk scores update when you:
- Upload amended contracts with better terms
- Re-analyze after adding context
- Manually mark risks as accepted
Note: Accepted risks still show in the score but are marked as reviewed.
Risk in Reports
Risk data appears in several reports:
- Dashboard - Average portfolio risk
- Risk Assessment Report - Detailed analysis
- Executive Summary - Risk distribution
Risk Agent Integration
The Risk Agent uses risk scores to:
- Flag high-risk contracts automatically
- Create review actions in the queue
- Suggest mitigation strategies
- Prioritize by severity
Filtering by Risk
Find risky contracts quickly:
- Go to Contracts page
- Use the Risk filter
- Select risk levels (High, Critical, etc.)
- View matching contracts
Best Practices
- Review high-risk immediately - Don't let them age
- Document acceptance - If you accept a risk, note why
- Track trends - Monitor portfolio risk over time
- Use for negotiation - Prioritize factor mitigation