Your Contract Isn't a Crockpot, Don't Set It and Forget It
Let's talk about the phase most of us skip: ongoing contract management. We negotiate. We sign. We file it away. And then… we never look at it again until something goes wrong or it's time to renew.
Here's the reality check: That signed contract sitting in your vendor management system? It's your most effective third-party risk control. But only if you actually USE it.
Why it matters: Many vendor relationship problems could have been prevented (or solved faster) if someone had reviewed the contract sooner. Missed SLA breaches, unreceived audit documentation, surprise price increases, and vendors falling short of performance standards, these issues often fly under the radar because we're not actively monitoring against contractual obligations.
Your action item: Set up periodic contract reviews (quarterly or semi-annually) for your critical and high-risk vendors. During these reviews:
-
Compare vendor performance against contractual SLAs
-
Review incident data and complaints to spot patterns
-
Assess whether current contract terms still align with the evolving risk environment
Pro tip: The risk landscape is constantly changing. A contract negotiated three years ago might not have the controls you need today. Regular reviews give you the opportunity to identify gaps and renegotiate terms before you're in crisis mode.
We want to hear from you!
How often do you review your vendor contracts beyond initial negotiation and renewal?
- Do you have a formal process for ongoing contract monitoring, or is it more ad hoc?
- What triggers a contract review at your organization-only when there's a problem, or proactively?
- What's one contract provision you wish you'd paid more attention to earlier?
- Have you ever caught a vendor falling short of their contractual obligations during a routine review? What happened?
-------------------------------------------