Traffic Light Risk Analysis
Generate traffic-light (green/yellow/red) risk assessments for contract provisions to speed stakeholder communication under standardized criteria.
ClaudeOpenAIVaries by stakeholder workflow and review cycles; validate with pilot metrics.
Consistent risk categorization
Contract Intelligence & Analytics
The Problem
- ✗Lengthy memos for business stakeholders
- ✗Difficulty prioritizing issues
- ✗Communication gaps with non-lawyers
- ✗Time spent explaining risk levels
- ✗Inconsistent risk characterization
How AI Supports This Workflow
Analyzes each provision against standards, assigns risk rating (green/yellow/red), provides brief rationale, generates visual-ready output, and summarizes overall risk.
Step-by-Step Workflow
Upload contract
Upload the contract for risk assessment.
Define risk standards
Define risk standards or apply an existing playbook.
Run traffic light analysis
Run traffic-light analysis against defined standards.
Review ratings and rationale
Review ratings and rationale for each provision.
Share with stakeholders
Share the risk summary with stakeholders.
Tool-specific Steps
Rate key contract terms as green, yellow, or red against our approved standards and fallback positions. Output: risk table, issue rationale, and negotiation priority list.
When to escalate
- Escalate if risk ratings depend on unresolved commercial assumptions.
- Escalate if any red issue conflicts with approved red-line policy.
Do This Now
- Choose your tool tab and copy the prompt.
- Run the workflow and review the top legal risks first.
- Compare output against your matter facts before sharing.
- Escalate to attorney review when any escalation check is triggered.
- Save your final notes and move to the related tutorial for deeper practice.
Frequently Asked Questions
How do I calibrate risk ratings?
Define your standards explicitly. "Green means it matches our playbook. Yellow means deviation we've accepted before. Red means we've never accepted this."
Can I customize the categories?
Yes. Use whatever rating system works for your organization (numbers, letters, colors, etc.).
How do I handle provisions with mixed ratings?
Assign based on the most significant risk element and explain the nuance in the rationale.