An AI contract risk scoring agent reads a contract and checks it against the risk criteria your team defines, covering topics like liability, term, data, termination and payment.
The agent reads clauses, values and parties.
Each clause is rated against the risk criteria.
The deal's size, data and criticality adjust the rating.
A score with its contributing clauses is shown.
Legal or risk reads the score and decides the response.
The score and reasons are kept with the contract.
It assigns a score or band and lists the clauses that drove it, quoting the text.
It sorts a portfolio of contracts by score so reviewers can start with the ones that need the most attention.
Nobody can read every contract in depth, so attention goes to whichever is newest or loudest. A consistent score lets teams see where exposure is concentrated across a whole portfolio.
Hundreds of contracts cannot all get a full legal read.
Financial, data, operational and legal exposure each need weighing.
Two reviewers may rate the same agreement differently.
The same clause is riskier with a critical vendor than a minor one.
Terms and vendor circumstances change after the contract is rated.
The agent uses the risk factors and weights your team defines, such as liability cap, auto-renewal and data handling.
It extracts the relevant terms and records where each was found.
Every factor is rated against your criteria, and the factors are combined into an overall band.
Vendor criticality and spend, where available, adjust the weighting as your rules specify.
Contracts are sorted by score, with the top reasons shown so a reviewer can see what drove the rating.
Bring a small sample and watch Flo work through it.
| Aspect | By hand | With the agent |
|---|---|---|
| Rating risk | Risk is a reviewer's overall impression. | Clauses are rated against stated criteria. |
| Explaining | Why a contract is high-risk is unclear. | The score lists the clauses that drive it. |
| Comparing | Contracts cannot be compared with each other. | One scoring method is applied to all. |
| Prioritising | Review queues are first-come. | High-scoring contracts are reviewed first. |
| Change over time | Risk is assessed once. | Scores are refreshed when terms change. |
| If | Then | Who decides |
|---|---|---|
| Contract has uncapped liability | Raise the score and name the clause | Legal counsel |
| Contract involves personal data | Raise data risk | Data protection lead |
| Deal is critical to operations | Raise the weight of continuity terms | Procurement lead |
| Contract is a low value standard | Keep the score low | None |
| Clause is missing a protection | Add the gap to the score | Legal counsel |
| Score exceeds the review level | Route for senior review | Legal lead |
The agent shows the severe item separately so it is not averaged away. Legal decides if it is acceptable.
The agent lists the missing facts, such as data volume. The owner supplies them.
The score is rerun with the amendment included. The contract manager confirms the amendment is final.
The disagreement is recorded with a reason. The risk owner considers whether the criteria need changing.
Talk it through with the team. We will map it to your steps and show where a person stays in control.
Agree what makes a clause risky and how much it matters.
Score signed contracts and compare with reviewers' views.
Order the review queue by score.
Adjust weights from reviewer feedback.
A score only matters if something follows. Track how many high-rated contracts have a decision recorded.
Quick answers to what people ask most about contract risk scoring.
Book a demoIt is rating a contract by the terms that could expose the company to loss, so reviewers can focus on the riskiest agreements first. The rating comes with its reasons.
It combines factors such as liability, term, termination, data handling and payment, using the criteria and weights your team sets.
No. It is a prioritisation aid built on your criteria. Legal reviews and decides what the risk means.
Yes, where contracts are available to read. It ranks them so reviewers can start with the highest ratings.
Playbook compliance is the check that a contract draft follows the positions a company has set for each clause, such as acceptable liability caps, governing law or payment terms.
→Risk clause detection is the process of finding contract terms that expose a company to loss or restrict its options, such as one-sided remedies, broad exclusions or hidden obligations.
→A fallback clause is pre-approved alternative wording a team may offer when a counterparty will not accept its preferred clause, usually ranked from least to most concessive.
→An auto-renewal clause is a contract term that extends the agreement for a further period unless one side gives notice by a set date.
→Bring a small sample of real items. We will show what Flo handles on its own and where it hands over to your team.
