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What is Contract Risk?

 , updated on
Contract risk is the potential that a counterparty will fail to meet their contractual obligations to you.

Examples

A customer goes bankrupt and fails to make contractual payments.
An employee discloses trade secrets in violation of a non-disclosure agreement.
A buyer refuses delivery of items they ordered, as documented in a contract, when the economy suddenly downturns.
A buyer refuses payment for delivered items until the price specified in a contract is renegotiated.
An IT vendor delivers a project that is judged a failure but refuses to pay the penalties specified in your contract with them.
Overview: Contract Risk
Type
Definition
The potential for a counterparty to fail to meet their contractual obligations.
Risk Treatments
Related Concepts
Next: Partner Risk

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