44 ALRAQABA . ISSUE 20 obligations, especially those related to safety and compliance, are being met by all parties. By scrutinizing third-party agreements, auditors can identify potential weaknesses in oversight or control, similar to the situation with Boeing’s outsourced software development. Moreover, auditing contracts can help organizations proactively address issues before they escalate into major risks. By evaluating contract performance and compliance, auditors can provide early warnings of potential disputes, financial losses, or reputational damage, allowing management to take corrective action. References: 1. https://www.factor.law/insights/in-life-contract-management-a-strategic-approachto-enhance-protection-profitability-and-revenue-generation. Nimal Hemelge, January 10, 2024. 2. https://legal.thomsonreuters.com/blog/what-is-contract-lifecycle-management/. Reuters, T. (2024) ‘Contract lifecycle management: An overview,’ Legal - Reuters. 3. https://www.villanovau.com/articles/contract-management/contract-lifecyclemanagement/ . Villanova University (2024) ‘Contract Lifecycle Management Benefits and Best Practices.’ 4. https://www.supplychainbrain.com/articles/29924-boeings-737-max-softwareoutsourced-to-9-an-hour-engineers . Bloomberg (2019). Boeing’s 737 Max Software Outsourced to $9-an-Hour Engineers . Conclusion In conclusion, effective contract management, fortified by robust auditing practices, stands as an indispensable shield against the multifaceted risks that pervade today’s complex business landscape. As exemplified by the Boeing case, the consequences of neglecting these vital processes can be catastrophic. From financial losses to reputational damage, the ripple effects of inadequate contract management and auditing reach far and wide. Therefore, organizations must embrace a proactive, riskconscious approach to contract management supported by thorough audits. Then, a culture of compliance, transparency, and sustainable growth can be fostered in an increasingly unpredictable world. Articles
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