Editing Risk management (section)

===Contractual risk management===
{{See also|Contract management}}

The concept of "contractual risk management" emphasises the use of risk management techniques in contract deployment, i.e. managing the risks which are accepted through entry into a contract. Norwegian academic Petri Keskitalo defines "contractual risk management" as "a practical, proactive and systematical contracting method that uses contract planning and governance to manage risks connected to business activities".<ref>University of Tromsø, [http://www.jus.uit.no/ansatte/keskitalo/CRM.htm Contractual Risk Management (C-RM)], accessed 6 January 2021</ref> In an article by Samuel Greengard published in 2010, two US legal cases are mentioned which emphasise the importance of having a strategy for dealing with risk:<ref name=greengard>Greengard, S. (2010), [https://www.nxtbook.com/nxtbooks/acec/engineeringinc0910/index.php#/p/12 The Difference Is in the Details], Engineering Inc., September/October 2010, pages 13–15</ref>
*UDC v. [[CH2M Hill]], which deals with the risk to a professional advisor who signs an [[indemnification]] provision including acceptance of a [[duty to defend]], who may thereby pick up the legal costs of defending a client subject to a claim from a third party,<ref>[https://caselaw.findlaw.com/ca-court-of-appeal/1497487.html UDC–UNIVERSAL DEVELOPMENT, L.P., Cross–Complainant and Respondent, v. CH2M HILL, Cross–Defendant and Appellant], Court of Appeal, Sixth District, California, 15 January 2010, accessed 7 January 2021</ref>
*Witt v. La Gorce Country Club, which deals with the effectiveness of a [[Limit of liability|limitation of liability]] clause, which may, in certain jurisdictions, be found to be ineffective.<ref>State of Florida, [https://law.justia.com/cases/florida/third-district-court-of-appeal/2009/3d08-1812.html Witt v. La Gorce Country Club], Third District Court of Appeal, 10 June 2009, accessed 6 January 2021</ref>

Greengard recommends using industry-standard contract language as much as possible to reduce risk as much as possible and rely on clauses which have been in use and subject to established court interpretation over a number of years.<ref name=greengard />