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Risk Agent

Learn how the Risk Agent monitors contracts for high-risk clauses and suggests mitigation strategies.

4 min read
Updated 1/30/2026

The Risk Agent proactively monitors your contract portfolio for high-risk agreements that need attention. It flags concerning clauses and suggests mitigation strategies.

How It Works

The Risk Agent continuously scans your contracts and:

  1. Identifies contracts with high or critical risk scores
  2. Analyzes specific risk factors and their severity
  3. Generates mitigation recommendations
  4. Creates review actions for your team

Risk Detection

The agent flags contracts based on:

  • Overall Risk Score - Contracts scored as "high" or "critical"
  • Specific Risk Factors - Individual concerning clauses
  • Combined Risk Exposure - Multiple medium risks in one contract

Risk Categories

The agent monitors over 25 risk factors across categories:

CategoryExamples
FinancialUnlimited liability, uncapped penalties, unfavorable payment terms
LegalBroad indemnification, inadequate IP protection, weak warranty
OperationalUnreasonable SLAs, restrictive exclusivity, poor termination rights
ComplianceMissing data protection, audit right gaps, regulatory exposure

Mitigation Suggestions

For each identified risk, the agent provides:

  • Risk Description - What the concerning clause says
  • Severity Level - Low, Medium, High, or Critical
  • Mitigation Strategy - Recommended language changes or negotiation points
  • Confidence Score - How certain the agent is about the assessment
Legal Review

While the Risk Agent provides valuable insights, high-risk contracts should always be reviewed by qualified legal counsel before signing.

Priority Levels

Risk actions are prioritized by severity:

PriorityCondition
UrgentCritical risk with active contract
HighHigh risk score or multiple concerning factors
NormalModerate risk requiring review

Approving Risk Actions

When you approve a risk flag action:

  1. The contract is marked for legal review
  2. Risk details are added to the contract's notes
  3. Relevant team members are notified (if configured)

Working with Risk Flags

After a contract is flagged:

  1. Review the specific risk factors on the contract detail page
  2. Use the mitigation suggestions as negotiation points
  3. Track resolution status in the contract timeline
  4. Update the contract if terms are renegotiated
Risk Scoring

Risk scores update automatically when contracts are re-analyzed. Renegotiated contracts may show improved scores after new terms are uploaded.

Best Practices

For effective risk management:

  • Review high-risk flags promptly
  • Document risk acceptance decisions
  • Use suggestions as starting points for negotiation
  • Regularly audit your high-risk contract portfolio

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