Formal contract management statements are more likely to embarrass than reduce risk. Whenever a contract falls to live, it automatically creates benefits and risks. A robust contract management and risk assessment strategy is known to help your business avoid costly mistakes, while improving operational efficiency and providing the opportunity to exploit all available opportunities to increase revenue and business expansion. As early as 2003, a study by Aberdeen Group showed that „inefficient control and management of supplier contracts costs companies $153 billion a year in missed savings and increased risks.“ „Best“ can be a subjective term. For the party issuing the contract, „the best“ could mean „the best for them“, so the risk could be deliberately unfair and unrealistic attributed to the other party. Risk of contract performance Contracts being legally binding, you must fulfill all obligations under the defined conditions. Steps and events must be closely adhered to and payments must comply with contractual conditions and be made on time. This is achieved by improving clients` understanding of the general elements of contractual liability and risk management, performing individual contract risk assessments for significant new transactions, and analyzing contractual portfolios, as shown in the chart below.