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.
Recommended skills
Start with official Claude and OpenAI skills where they exist, then use Legalai.guide starter bundles for supervised workflows.
Commercial Legal Plugin
Vendor MSAs, NDAs, playbook review, amendment tracing, and renewal workflows for in-house commercial counsel.
Install officially
Contract Playbook Reviewer
Review commercial contracts against your organization's negotiation playbook, flagging deviations with severity indicators and suggested redline language. Use when reviewing vendor agreements, customer contracts, or any commercial agreement where clause-by-clause analysis against standard positions is needed.
Download starter bundle
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.
Freshness and Source Checks
Before using this workflow on a live matter, check recent product updates and apply the legal AI quality checklist.