Overview
The LinkSquares Risk Scoring Agent uses customizable risk criteria to identify and flag language in pre-signature and post-signature agreements in Finalize and Analyze.
Risk Scoring provides quick results when otherwise manually reviewing large amounts of data.
Process
LinkSquares’ AI Risk criteria is established based on three key components:
- Name: A succinct but descriptive title. (Clause)
- Definition: A brief description of the language that the AI should flag. (Context)
- Weight: A numerical value based on the sliding value that represents the magnitude of risk (a higher number represents a higher risk).
LinkSquares’ AI uses all three pieces of information in the analysis process.
For best results, each risk criterion should be as specific as possible (i.e., rather than creating a single risk that encompasses several risk factors).
Risk Criteria are applied using both Agreement Types and Tags. Each Risk must have an Agreement Type associated with it. Tags can be applied to further refine the scope of the Risk Criteria. Agreements that are outside of the Agreement Type criteria will result in an error message. To resolve, add the Risk criteria to the specific agreement type.
Roles and Permissions
Risk Scoring has two Role Permission sets to choose.
Administrator: Create and edit risk criteria, run risk scores.
Member: Ability to run risk scores.
All other users not assigned the two roles above will be able to view results at the agreement level only.
Roles are assigned by an account Administrator through the 'Manage Users' section
Setting up the Risk Scoring Agent
The Risk Scoring Agent relies on two essential components:
- Risk criteria
- User permissions
Create Risk Criteria by navigating to the Risk Areas and clicking Add Risk.
The Risk criteria, agreement type, must be setup first, or will result in error.
Risk Criteria include three components:
- Name: A succinct but descriptive title.
- Definition: A brief description of the language that the AI should flag.
- Weight: A numerical value based on the sliding value that represents the magnitude of risk (a higher number represents a higher risk).
The Risk creation page will open: Fill out all fields to ensure accurate results.
Reminder: Each Risk must have an Agreement Type to which it will be applied.
Tags may be used to further narrow the scope in which the Risk is applied.
Risk Criteria set up under the Risk platform will apply to both Analyze and Finalize risk scores.
The Risk Criteria that is setup will be reflected on the Reports page.
Gradebook
The Risk Scoring Gradebook provides a reference for how numerical risk scores are translated into letter grades. These grades help standardize the interpretation of risk levels across all contracts.
Risk Insights
Risk Insights provides an automatic search agent that delivers a monthly report highlighting ‘F-Grade (High Risk) contracts renewing within the next 4 months.
Helping you stay informed about upcoming high-risk contract renewals.
- Schedule: Reports will be sent on the first of each month
- Recipients: Email sent automatically to all Risk Scoring Administrators
- The report includes the following information:
- A summary of overall risk trends
- Top 5 common risk areas
- Top 5 entities with the riskiest contracts
- A detailed report, including key renewal dates and identified risk areas of each contract
Risk Scoring Administrators are opted in by default.
To opt-out of the email, navigate to the Risk Tab, and select “Opt Out of Monthly Insight Report.”
To re-enable it, select “Opt in to Monthly Insight Report”
Analyze
The Risk Scoring Agent may be used to examine agreements in Analyze by navigating to the Risk Report page.
Select all agreements to be analyzed and click Run Risk Report to activate the Risk Scoring Agent.
When the analysis is complete, the normalized Risk Score (out of 100) will be displayed in the Risk Score column.
Filter agreements using the search bar and the Termination Date selector to find active, inactive, or evergreen agreements
Risk details are also displayed under the Risk tab of each agreement in Analyze.