Managing risk is one of the most important ways procurement can make a difference, and when it’s done right, it changes everything. A global company recently partnered with its procurement and legal teams to rethink how they managed contracts. The results were game-changing. By centralizing agreements and uncovering hidden risks, they saved millions and created a stronger foundation for operations across regions. It’s no surprise this work earned them recognition from the Association of Corporate Counsel (ACC) for innovation and collaboration.

Examples like this show just how much value is hiding in your procurement contracts. Spotting risks early doesn’t just prevent problems. It unlocks opportunities. Your contracts hold more than obligations. They’re where risks hide but also where solutions live. Here are 10 risks that might be lurking in your procurement contracts and how to tackle them head-on.

1. Missed Renewal Deadlines

When contracts renew automatically, key opportunities to revisit pricing or renegotiate terms often go unnoticed. This oversight can lock in outdated agreements that no longer meet your needs. By tracking renewal dates, you can proactively adjust terms or phase out agreements that no longer serve your goals.

2. Outdated Compliance Clauses

Contracts often contain clauses tied to past regulations that have since changed, leaving your organization vulnerable to fines or non-compliance. Buried language may conflict with updated data privacy laws, such as the General Data Protection Regulation (GDPR), or Environmental, Social, and Governance (ESG) standards, creating unnecessary risks. A regular review can uncover these outdated terms and align your contracts with current standards.

3. Vague Supplier Performance Metrics

Contracts that lack specific performance benchmarks or service-level agreements (SLAs) leave you without a way to measure success or hold suppliers accountable. Hidden gaps in performance terms can lead to missed deliverables or disputes. Defining these metrics upfront ensures clarity and accountability.

4. Overlooked Financial Clauses

Rebates, early-payment discounts, and performance incentives are often buried deep in contracts. When these clauses are overlooked, potential savings or cost recoveries go unclaimed. Uncovering these terms ensures you get the full financial benefits of your agreements.

5. Payment Terms Impacting Cash Flow

Most companies rely on standardized payment terms—like 30 or 45 days—to keep cash flow predictable and under control. But without visibility into how many vendor agreements adhere to those terms, cash can get tied up in ways that hurt liquidity.

6. Rigid Terms That Increase Supply Chain Risk

Contracts that don’t include flexible terms, such as pricing adjustments or alternative sourcing clauses, can create vulnerabilities when supply chain disruptions occur. Hidden rigidity in your agreements might leave you exposed to delays or increased costs.

7. Duplicate Vendor Agreements

Hidden overlaps between vendors offering similar services create unnecessary inefficiencies and costs. Without visibility into all your contracts, it’s easy to miss opportunities to consolidate agreements and simplify management while driving savings.

8. Poorly Defined Roles and Responsibilities

Hidden ambiguities in contracts can create confusion about deliverables, timelines, or responsibilities. These gaps can lead to disputes or missed deadlines. Clear, detailed terms ensure both parties are aligned from the start.

9. Unused Service Clauses

Contracts often include underutilized services, like maintenance or training, that go unnoticed during the contract lifecycle. These unused resources are value already paid for, but without proper tracking, they’re easily forgotten.

10. Outdated Liability Protections

Liability terms that were sufficient years ago may no longer reflect today’s risks, like cybersecurity threats or regulatory penalties. These outdated clauses can leave your organization exposed. Identifying and updating them ensures your contracts provide adequate protection.

Hidden risks in your procurement contracts don’t have to stay hidden. Contract intelligence uses artificial intelligence (AI) to extract, organize, and analyze data, giving you complete visibility into your agreements. With this clarity, procurement teams can spot compliance gaps, missed financial opportunities, and performance risks in seconds instead of hours.

Contract intelligence takes the guesswork out of risk management. Instead of manually combing through pages of terms, you can quickly identify outdated clauses, ambiguous language, or hidden opportunities to strengthen your contracts and reduce exposure.

Procurement teams using contract intelligence have saved time, uncovered hidden value, and found better ways to get the most out of their contracts. By making it easier to spot opportunities and take action, contract intelligence helps leaders strengthen their impact and bring even more value to their organizations.

Ready to learn how contract intelligence can help you uncover and manage the risks in your procurement contracts? Read on.