FREE Certified Professional Contract Manager: Contract Risk Assessment and Mitigation Questions and Answers
Which type of data encryption is mentioned in the article as a method to protect contract data?
The article mentions encrypting information at rest, which refers to data stored within the contract management system.
What is the benefit of maintaining contract version control?
Maintaining contract version control ensures that edited documents are properly tracked, preventing errors and inaccuracies.
How can automated workflows help mitigate contract risk?
Automated workflows ensure that business rules are followed in the contract lifecycle, improving compliance and mitigating risks associated with missed steps or approvals.
What is the first step in contract risk mitigation?
The first step in contract risk mitigation is to identify the specific risks associated with each contract.
What factors should be considered when implementing contract risk mitigation?
Various factors, including the type of contract, parties involved, contract terms, project risks, and company policies, should be considered during implementation.
What are the principal phases of risk management?
The three main steps in risk management mentioned in the article are: identify, assess, and mitigate.
What is the purpose of using electronic signatures (e-signatures) in contract risk mitigation?
E-signatures speed up document signing, enhance security, and provide a digital record of the signing process, which helps mitigate contract-related risks.
How should the chosen contract risk mitigation strategy be tailored?
The chosen mitigation strategy should be tailored to the specific circumstances of the contract.
What is the main focus of the article "7 Ways to Mitigate Contract Risk"?
The article discusses various strategies for mitigating risks associated with contracts and how contract management software plays a role in achieving this.
How does insurance contribute to the process of mitigating risks in contracts?
Insurance in contract risk mitigation protects both parties in the event of issues with the agreement.
What is the benefit of effective contract risk mitigation?
Effective contract risk mitigation can save time and money by avoiding or minimizing potential disputes and improving relationships.
What is the primary goal of implementing contract risk mitigation?
Contract risk mitigation aims to identify and manage risks to reduce potential losses arising from contractual agreements.
What is the purpose of role-based security in contract risk mitigation?
Role-based security helps restrict unauthorized access to contracts, ensuring that only authorized individuals can view or edit specific documents.
What is contract risk mitigation?
Contract risk mitigation involves identifying, analyzing, and taking steps to reduce or eliminate risks associated with contracting.
Which of the following is NOT mentioned as a risk mitigation strategy?
The article discusses strategies such as encrypting data, automating renewals, and implementing role-based security. However, manual redlining is not mentioned as a strategy.
What form of contract risk mitigation involves establishing a dedicated account for funds related to the contract?
Escrow accounts are accounts set up specifically for a contract, ensuring that funds are available to fulfill the terms of the agreement.