Document background
The Contract Risk Management Policy serves as a crucial governance tool for organizations operating in Canada, providing a structured framework for managing contractual risks across all business operations. This policy becomes necessary when organizations need to standardize their approach to contract risk assessment, establish clear approval hierarchies, and ensure consistent risk mitigation strategies. It incorporates requirements from Canadian federal and provincial legislation, including corporate governance guidelines, privacy laws, and industry-specific regulations. The policy typically includes detailed procedures for risk identification, assessment matrices, approval authorities, and monitoring protocols, making it essential for maintaining effective risk control and regulatory compliance. Organizations should implement this policy to establish clear accountability, protect corporate interests, and ensure systematic risk management in all contractual relationships.
