Risk perspectives - Combing through the contract

One aspect of the risk manager's job that has grown in importance, without attracting much publicity, is that of contract management.

When a company enters into a contract - either as a purchaser or supplier - the whole business could be at risk unless senior management genuinely understands the risks and has fully taken into account the potential pitfalls.

Responsibility for scrutinising the proposed deal is falling increasingly to the risk manager. This involves, among other things