Risk mitigation

Mitigating risk should be a key objective when drafting contracts. The parties should try to identify potential risks that are specific to the relationship and negotiate the risk allocation accordingly. Risk mitigation strategies can include adding an indemnification clause, insurance requirement, warranties, or limitation of liability provisions to the contract.

Disclaimer: The views and opinions expressed in this article are those of the Subject Matter Experts and do not necessarily reflect the official policy or position of The Procurement School.