42 ALRAQABA . ISSUE 20 Articles Abdulrahman Alnassar Specialist Engineer, Technical Support Department In the ever-changing business environment, marked by countless challenges and unknown variables, successful contract management stands out as a vital foundation for companies and entities aiming to manage risks and protect their interests. Far from being a mere administrative function, contract management assumes a strategic role in risk mitigation, ensuring that contractual obligations are met, potential pitfalls are identified and addressed proactively, and value is maximized throughout the contract lifecycle [1]. This article illustrates a deep look into the multifaceted role of auditing and contract management in risk mitigation, highlighting their significance in today’s dynamic environment. Understanding Contractual Risks Contractual risks encompass a broad spectrum of potential hazards that can arise during the execution of a contract. These risks can stem from various sources, including ambiguous contract language, unforeseen events, noncompliance by one or more parties, and changes in the external environment. Failure to manage these risks effectively can lead to financial losses, reputational damage, legal disputes, and strained relationships. Role of Auditing and Contract Management in Risk Mitigation
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