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Contract Review / Contractual Risk Management
Protection and support for all the vendor-related risks your business can face.
- How confident are you that your vendors have adequate insurance limits and coverage to protect your business should they be at fault in a claim?
- How confident are you that contractual agreements are in place with your vendors that indemnify you and hold your business harmless from litigation?
Every business utilizes vendors, including suppliers, contractors, service providers, transportation providers, staffing agencies and other third-party organizations, to support day-to-day operations. Not only do these vendors play an integral role in business, but they also add complexity to an organization’s overall risk.
For example, what if one of your key vendors had inadequate insurance coverage that failed to protect your organization in the event of a catastrophic loss? Does your organization have a systematic process for requesting and tracking certificates of insurance in order to avoid the risk of insurance claims and costly lawsuits? Imagine the potential risks associated with the failure to develop strategic, thorough contractual agreements that transfer high risk and high frequency exposures to your vendors (indemnities) and can also protect your supply chain in the event of a supply chain disruption.
In today’s litigious business environment, failure to effectively manage vendor risk and compliance is not only widespread, but extremely hazardous to the sustainability and profitability of any organization. Vendor agreements protect organizations by establishing the scope of the relationship and may include relevant information regarding the product or service requirement, financial obligations and indemnifications. Oftentimes, the contract also stipulates the insurance limits required to conduct business with the procuring organization.
Vendor contracts alone, however, are not sufficient to protect companies from potential litigation and financial loss. Without a systematic process for requesting and tracking incoming certificates from vendors the benefits of contractual agreements are diminished. The Gibraltar Group has developed a specific contract risk assessment solution to help organizations manage their vendors and associated risks. VendorGUARD™ is a comprehensive vendor compliance management application that assists businesses with everything from standards setup to implementation of carefully drafted vendor agreements, contract risk analysis and certificate tracking.
- Vendor risk analysis
- Contract review and development
- Certificate tracking and management
- Online vendor management portal
- Monthly vendor compliance reports