Risk Assessment of Business Contracts
- Hervé Panetto and
- Nacer Boudjlida
Published Online: 22 JAN 2010
Copyright © 2006 ISTE Ltd.
Interoperability for Enterprise Software and Applications: Proceedings of the Workshops and the Doctorial Symposium of the Second IFAC/IFIP I-ESA International Conference: EI2N, WSI, IS-TSPQ 2006
How to Cite
Kabilan, V. and Weigand, H. (2006) Risk Assessment of Business Contracts, in Interoperability for Enterprise Software and Applications: Proceedings of the Workshops and the Doctorial Symposium of the Second IFAC/IFIP I-ESA International Conference: EI2N, WSI, IS-TSPQ 2006 (eds H. Panetto and N. Boudjlida), ISTE, London, UK. doi: 10.1002/9780470612200.ch16
- Published Online: 22 JAN 2010
- Published Print: 1 JAN 2006
Print ISBN: 9781905209613
Online ISBN: 9780470612200
- risk assessment;
Enterprises conduct business transactions with other enterprises for a number of economic, business and strategic motivations. These business relationships are often governed through legal business contracts. Contracts are instruments in not only establishing the legality of the business relationships but also (1) to spell out the expected behaviour from all parties concerned, (2) to make explicit all the obligations and responsibilities that each party undertakes to fulfil and (3) to divide the potential risks and costs involved in the proposed business transaction so as to be a mutually satisfactory arrangement. In this paper, we focus on the risk assessment and evaluation of proposed business contracts. By analyzing the obligations and their fulfilment criteria as stipulated in the business contract and thereafter applying risk models, we propose a methodology for evaluating the suitability of a proposed contractual terms and conditions for a particular business organization.