Level of care. Check the standard of care to make sure it is appropriate. If your business provides professional services, it cannot be „justified“ because it poses an insurability problem. Clients also often require that services be provided in accordance with the „highest level of care.“ Consider whether your company`s insurance coverage meets a right that exceeds your industry`s normal standards of care. The answer is often „no“ or „maybe not.“ If your client asks you to accept a higher level of care, your operating team needs to understand the increased risk this poses to the project. While it is important to minimize the potential risks of your contracts, it is also important that you do not miss out on great opportunities for fear of risk. As hockey legend Wayne Gretzky put it: „You`re 100% short of the shots you don`t take.“ The review and negotiation of contracts is an essential task in risk management, but sometimes we have to accept conditions that we do not like for a number of reasons. Perhaps the client refuses to make any changes to his form of agreement. The project may be crucial to your business and your operating team is willing to take the risk. In any case, a lack of inputs from the risk management division or a similar contract review process should never be the reason why your company accepts bad contractual terms.
If something goes wrong with the execution of the project, the first defense of your company is a clear level of service, a reasonable schedule and price, as stipulated in the contract. In these areas, the risk management department must engage in the expertise of the operating team. But the rest of the contract is ultimately related to risk transfer and reduction, which means that both risk management and operational teams need to understand how contractual terms can increase or reduce the risk to the company. Therefore, it is essential that your operating team come to your home comfortably before, during and after contract negotiations to discuss risk management and risk reduction. When a buyer does not collect and implement guidelines from one of the two groups, or otherwise adheres to the contractual risk management standards and practices presented here, the university risks collectively and collectively exposing its academic or administrative unit to significant financial losses. Although Harvard has its own insurance programs, there are certain kinds and parts of losses that Harvard cannot or cannot insure against. Therefore, for debts arising from a supplier agreement that have been increased by allowing less stringent conditions than those mentioned above, responsible TUB will absorb the increased financial consequences imposed on the university for the portion of a loss that would have been recovered by the supplier if current standards and practices had been met the contracts in all forms are buried in virtually every part of the university`s operations and constitute a vital and integral support mechanism for the promotion of Harvard`s mission. They are available in many styles, but most often have the form of consulting contracts, licenses, declarations of intent, rental of real estate, rental of equipment or facilities, orders, partnership contracts, research grant applications and related bonus and/or sub-price agreements.