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Contract Intelligence & Analytics

Traffic Light Risk Analysis

Generate traffic light (green/yellow/red) risk assessments for contract provisions, enabling 50-70% faster stakeholder communication.

Time Saved

50-70% faster stakeholder communication

Accuracy

Consistent risk categorization

Category

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 Claude Helps

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

1

Upload contract

Upload contract for risk assessment

2

Define risk standards

Define risk standards or use existing playbook

3

Run traffic light analysis

Run traffic light analysis against defined standards

4

Review ratings and rationale

Review ratings and rationale for each provision

5

Share with stakeholders

Share visual risk assessment with stakeholders

Example Prompt

Generate a traffic light risk assessment for this vendor agreement:

RISK CATEGORIES:

GREEN (Acceptable)
- Matches our standard requirements
- Common market terms
- No negotiation needed

YELLOW (Attention)
- Deviates from standard but acceptable
- May want to negotiate
- Requires business decision

RED (Risk)
- Significantly unfavorable
- Should negotiate before signing
- Potential deal issue

ASSESS THESE PROVISIONS:
1. Liability cap
2. Indemnification
3. Termination rights
4. Data security
5. IP ownership
6. Confidentiality
7. Assignment
8. Governing law

FOR EACH:
| Provision | Rating | Issue | Recommendation |

SUMMARY:
- Overall risk rating
- Key issues requiring attention
- Negotiation priorities
- Recommendation (sign/negotiate/reject)

Format for business stakeholder review.

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.

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