Contract Risk

Contract Risk - Risk that a contractual party or counterparty will fail to meet its contractual obligations, resulting in adverse consequences. This risk can arise from an organization's contractual agreements with third parties, such as suppliers, clients, or partners. Causes can include poorly drafted contracts, inadequate risk assessment, noncompliance with terms, or counterparty breach or default, potentially leading to legal disputes, financial losses, or reputational damage, ultimately impacting the organization's overall performance, relationships, and growth opportunities.

Class Information

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Identification

IRI: https://folio.openlegalstandard.org/R11b9mOkT5RZeZLUZdZpKP
Label (rdfs): Contract Risk
Preferred Label: None
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Definition and Examples

Definition: Risk that a contractual party or counterparty will fail to meet its contractual obligations, resulting in adverse consequences. This risk can arise from an organization's contractual agreements with third parties, such as suppliers, clients, or partners. Causes can include poorly drafted contracts, inadequate risk assessment, noncompliance with terms, or counterparty breach or default, potentially leading to legal disputes, financial losses, or reputational damage, ultimately impacting the organization's overall performance, relationships, and growth opportunities.
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Class Relationships

Sub Class Of: Risk Management Objective
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Additional Information

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Deprecated: False

Metadata

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