Future of Control | Risk Alignment: Contract Risk Sensing
As part of our vision for the Future of Control, one of the key themes that we focus on is Risk Alignment. This is based on our deep insights into the risks faced by organizations. We found that enterprises face substantial challenges in contract management, including massive text-based data, diverse document types, unstructured low-density information, and discrete storage distributed across various user terminals.
In daily management, a contract review runs through the front-end of the business to the full life cycle of the contract itself. It is a time- and labor-consuming element of contract management, and an important part of risk management.
The Deloitte China Risk Advisory team recognized this trend from a very early stage, and has been investing in research, development and practice, achieving good results in technology, platforms and mechanisms for intelligent contract management.
This article briefly introduces the Deloitte Contract Risk Sensing Service to help you quickly understand how it works and can benefit your organization.
About the Service
Deloitte Contract Risk Sensing Service provides clients with a one-stop digital and intelligent contract management solution. With Deloitte's accumulation of risk management knowledge, using AI technology, the Service can identify the pain points and opportunities in contract management, achieving breakthroughs in drafting, review, comparison and counterparty management, and improving contract management efficiency.
Combined with process, system and contract data, the Service provides an application scenario-oriented contract intelligent management solution:
The Service can also can assist clients to realize contract management innovation, and improve contract management efficiency:
The Service is based on the Cerebrum engine developed by Deloitte, which focuses on text analysis integrated with various digital technologies, including natural language processing, OCR, machine learning and deep learning. It provides powerful support that meets clients' diverse needs for contract management innovation.
Through the analysis and mining of text data, the following key values can be realized:
- Risk Sensing leading to more comprehensive risk management
- Improved efficiency of contract management
- Unlocking the value of data to generate insights
In a Contract Intelligent Management Platform project for a company in China, we leveraged a one-stop digital and intelligent contract management solution to assist the client in:
- Contract review automation
- Contract intelligent comparison
- Contract management platform digitization
- Contract management intellectualization
Through the platform, the client not only achieved contract management digitalization, but also through machine learning and text mining technology achieved one-click automation of contract risk analysis, review and reporting. This improved contract review efficiency by 15 to 20 times.
In this case, the Platform included the following core functions:
- Text extraction of key contract information
One-click extraction of key information in various documents, formation of knowledge base, and reduction of manual work.
- Automatic recognition of contract text
Through natural language processing, the contents of the contract text were identified and classified, and a knowledge base of contract terms was automatically generated, so that the contents of contract terms could be managed easily.
- Contract review and comparison
Identified risky clauses in the contract and suggested modifications. Located differences between approved contract version and the actual signed contract, revealing risk of tampering.
- Automatic risk assessment against counterparty
Collected negative news, assisted client in real-time perception of negative public opinion status of counterparty, responded quickly in contract risk management, and reduced risk of losses.
- Big data analysis report
Aggregated contract-related risk areas, internal and external risk information and other areas of risk points explored by the system, predicted and tracked path of multi-source risks within the company, and outputted contract big data analysis report to provide early warning.
Enterprises' focus on efficiency improvements and identifying risks has penetrated every aspect of their operations, and contract management is no exception. We help enterprises improve their controls over contract risk management and meet these challenges through our experience and leading-edge, intelligent technologies.
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