Method and system for managing contractual risk

• US 20030125965A1
• Filed: 12/21/2001
• Published: 07/03/2003
• Est. Priority Date: 12/21/2001
• Status: Abandoned Application

• Current Assignee: General Electric Company
• Original Assignee: General Electric Company
• Inventors: Marriott, William Alan, Hays, Jeffrey L., Whittingham, Jeffrey A., Falso, Edward D.
• Application Number:
  US10/032,209
• Publication Number:
  US 20030125965A1
• Time in Patent Office: Days
• US Class Current: 705/1
• CPC Class Codes: G06Q 30/018 Certifying business or products
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

A method and system for assessing and managing risk associated with a contract. The system allows a business to establish its risk profile/parameters/guidelines for contracts. The contract risk management system receives information relating to a particular proposed contract, which may include one or more risk variations or variations to a standard form of contract. The system identifies an approver for a variation and coordinates reception of approval of the variation by the identified approver. When all approvals have been received, the system indicates approval of the contract. The system may also generate a risk report based on the risk factors and premises associated with the contract and the current status of approvals for that contract.

Claims

1. A method in a computer system for managing risk of a contract, the method comprising:

receiving information relating to the contract, the information including one or more risk variations in the contract;

identifying an approver for a variation;

coordinating reception of approval of the variation by the identified approver; and

when all approvals have been received, indicating approval of the contract.

2. The method of claim 1 wherein the identifying includes receiving from a user the identification of an approver.

3. The method of claim 1 wherein at least one risk variation corresponds to a variation from contract risk standards.

4. The method of claim 1 wherein at least one risk variation corresponds to a variation from standard form of contract.

5. The method of claim 1 further comprising identifying contract risk standards established by an organization.

6. The method of claim 1 wherein each risk variation corresponds to one or more risk factors.

7. The method of claim 1 wherein at least one approval is a partial approval.

8. The method of claim 1 wherein at least one approval is conditioned upon changes to the contract.

9. The method of claim 1 further comprising generating a report that summarizes the status of approvals for the proposed contract.

10. The method of claim 1 further comprising generating a report that summarizes the risk variations in the proposed contract.

11. The method of claim 1 further comprising generating a report that summarizes the variations from a standard form of contract.

12. The method of claim 1 further comprising storing the information relating to the contract and an indication of receipt of approval of a risk variation.

13. The method of claim 1 wherein the information relating to the contract includes a contract name, a customer name, an entry date, and a contract close date.

14. The method of claim 1 wherein the contract is a contract for services.

15. The method of claim 1 wherein the contract is a contract for goods.

16. The method of claim 1 wherein the contract is a contract for both goods and services.

17. The method of claim 1 further comprising automatically determining an approver based on the type of risk variation.

18. The method of claim 1 wherein the approver for a risk variation is a group of individuals.

19. The method of claim 1 wherein the approver for a risk variation is an individual.

20. A contractual risk management system comprising:

a receiving means for receiving information related to a contract, wherein the contract information includes an indication of one or more risk variations in the contract;

an identifying means for identifying an approver for a variation;

a coordinating means for coordinating reception of the approval of the variation; and

an approval means for indicating approval of the contract.

21. A contractual risk management system in a risk management computer comprising:

a definition component for receiving information related to a contract from a user on a user computer, the contract information including an indication of one or more risk variations in the contract;

a database for storing the contract information;

a contractual risk component that identifies an approver for at least one risk variation;

a coordination component that coordinates reception of approval of at least one risk variation by the identified approver; and

an indication component that indicates approval of the contract when all required approvals have been received.

22. The system of claim 21 wherein the risk management computer receives from a user the identification of an approver.

23. The system of claim 21 wherein each risk variation corresponds to one or more risk factors.

24. The system of claim 21 wherein the information relating to the contract includes a contract name, a customer name, an entry date, and a contract close date.

25. The system of claim 21 wherein the contract is a contract for servcies.

26. The system of claim 21 wherein the contract is a contract for goods.

27. The system of claim 21 wherein the contract is a contract for both goods and services.

28. The system of claim 21 wherein at least one risk variation corresponds to a variation from contract risk standards.

29. The system of claim 21 wherein at least one risk variation corresponds to a variation from standard form of contract.

30. A computer-readable medium whose contents cause a computer to assist managing risk of a contract by a method comprising:

receiving information relating to the contract, the information including one or more risk variations in the contact;

identifying an approver for at least one risk variation;

coordinating reception of approval of at least one risk variation by the identified approver; and

when all approvals have been received, indicating approval of the contract.

31. The computer-readable medium of claim 30 wherein the identifying includes receiving from a user the identification of an approver.

32. The computer-readable medium of claim 30 wherein at least one risk variation corresponds to one or more risk factors.

33. The computer-readable medium of claim 30 wherein at least one risk variation corresponds to a variation from contract risk standards.

34. The computer-readable medium of claim 30 wherein at least one risk variation corresponds to a variation from standard form of contract.

35. The computer-readable medium of claim 30 further comprising generating a report that summarizes the status of approvals for the contract.

36. The computer-readable medium of claim 30 further comprising generating a report that summarizes the risk variations in the proposed contract.

37. The computer-readable medium of claim 30 further comprising generating a report that summarizes the variations from a standard form of contract.

38. The computer-readable medium of claim 30 further comprising storing the information relating to the contract and an indication of receipt of approval of one or more variations.

39. The computer-readable medium of claim 30 wherein the information relating to the contract includes a contract name, a customer name, an entry date, and a contract close date.

40. The computer-readable medium of claim 30 further comprising automatically determining an approver based on the type of variation.

41. The computer-readable medium of claim 30 wherein the approver for a risk variation is a group of individuals.

42. The computer-readable medium of claim 30 wherein the approver for a risk variation is an individual.

43. A method in a user computer for managing risk of a contract, the method comprising:

receiving information relating to the contract, the information including one or more risk variations in the contact;

approving one or more risk variations to the contract, wherein the user has authority to approve at least one risk variation to the contract; and

transmitting an indication of the one or more approved risk variations to a server computer, the server computer being adapted to coordinate the reception of approvals of the variations.

44. The method of claim 43 wherein each variation corresponds to one or more risk factors.

45. A method in a computer system for managing risk of a contract, the method comprising:

receiving information related to the contract, the contract information including an indication of one or more risk variations in the contract;

storing the contract information;

identifying one or more risk factors associated with each risk variation;

identifying one or more premises associated with each risk factor;

receiving a request for a risk report;

generating a risk report, wherein the risk factor report includes at least part of the contract information and an indication of the risk factors and premises associated with the contract; and

transmitting the risk report.

46. The method of claim 45 further comprising providing an indication when all necessary indications of approval are received to approve all variations in the contract.

47. The method of claim 45 wherein the contract information includes a contract name, a contract identification, a customer name, an entry date, and a contract close date.

48. The method of claim 45 further comprising identifying one or more approvers for each variation.

49. The method of claim 45 further comprising determining the one or more risk factors and premises based on the type of variation.

50. The method of claim 45 further comprising determining the one or more risk factors and premises based on the contract information.

51. A computer-readable medium whose contents cause a computer to assist managing risk of a contract by a method comprising:

receiving information related to the contract, the contract information including an indication of one or more risk variations in the contract;

storing the contract information;

identifying one or more risk factors associated with each risk variation;

identifying one or more premises associated with each risk factor;

identifying one or more approvers for each risk variation;

receiving a request for a risk report;

generating a risk report, wherein the risk factor report includes at least part of the contract information and an indication of the risk factors and premises associated with the contract; and

transmitting the risk report.

52. The computer-readable medium of claim 51 further comprising providing an indication when all necessary indications of approval are received to approve all variations in the contract.

53. The computer-readable medium of claim 51 further comprising determining the one or more risk factors and premises based on the type of variation.

54. The computer-readable medium of claim 51 further comprising determining the one or more risk factors and premises based on the contract information.

55. A contractual risk management system comprising:

a receiving means for receiving information related to a contract, the contract information including an indication of one or more risk variations in the contract;

an identiying means for identifying one or more risk factors associated with each risk variation and for identifying one or more premises associated with each risk factor;

a report means for generating a risk report; and

a transmitting means for transmitting the risk report.

56. A contractual risk management system comprising:

a definition component for receiving information related to a contract, the contract information including an indication of one or more variations to the contract;

a database for storing the contract information;

a contractual risk component that identifies one or more risk factors associated with each variation, wherein the contractual risk component also identifies one or more premises associated with each risk factor; and

a risk report component that generates a risk report, wherein the risk report includes at least part of the contract information and an indication of the risk factors and premises associated with the contract.

57. A method in a user computer for managing risk of a contract, the method comprising:

transmitting to a server computer information related to a contract, the contract information including an indication of one or more risk variations in the contract;

wherein the server computer identifies one or more risk factors associated with each risk variation, and wherein further the server computer identifies one or more premises associated with each risk factor; and

receiving a risk report, wherein the risk factor report includes at least part of the contract information and an indication of the risk factors and the premises associated with the contract, and wherein further the risk report includes an indication of the approval status of at least one risk variation, the server computer being adapted to coordinate approvals of the variations.

58. The method of claim 57 further comprising transmitting a request for a risk report to the server computer.

59. The method of claim 57 further comprising transmitting an indication of the risk factors associated with each variation.

60. A computer-readable medium containing a data structure for use by a contractual risk management system, the data structure comprising:

an indication of a contract identification, wherein the contract identification is a contract name or a contract identification number;

an indication of one or more proposed risk variations in the contract associated with the contract identification;

an indication of one or more risk factors associated with each proposed variation.

61. The computer-readable medium of claim 60 further comprising an indication of the approval status of one or more proposed variations.

62. A computer-readable medium containing a data structure for use by a contractual risk management system, the data structure comprising:

an indication of a contract identification, wherein the contract identification is a contract name or a contract identification number; and

an indication of approval of one or more proposed risk variations in the contract.

63. A method in a computer system for managing risk of a contract, the method comprising:

receiving information relating to the contract, the information including one or more risk variations in the contract;

identifying risk guidelines and parameters, the risk guidelines and parameters being associated with an organization and with one or more risk variations;

determining a description for each risk guideline and parameter; and

generating a report summarizing the one or more risk variations in the contract and risk guidelines and parameters associated with the one or more risk variations, the report also describing each risk guideline and parameter included in the report.