CobbleStone Software is packed with many risk management and risk mitigation tools. This document is not intended to be a comprehensive guide for risk mitigation and management as many of the CobbleStone features include risk management and often depend on the out-of-box fields, configured fields, configured rules, industry requirements, your organization policies & procedures, corporate legal advice, and creative usage of the tools covered in this document.
Some of the basic risk mitigation tools include:
CobbleStone also offers more advanced risk management tools:
Artificial Intelligence & Machine Learning
Artificial Intelligence & Machine Learning leverages advanced analytics and statistics combined with artificial intelligence, CobbleStone’s VISDOM™ AI, to help further reduce risk.
Risk Mitigation with Artificial Intelligence with Correlation & Regression has been added to CobbleStone Software and helps by using advanced statistics to recognize risk and both positive and negative patterns. Once a pattern or a trend is detected via correlation and regression analysis, rules can be set to enable the CobbleStone Software AI Engine to make intelligent recommendations based on available data. This provides a standards-based method to recognize risk and re-evaluate outlying risks. For advanced intelligence, have criteria update over time to enable the systems to learn (via Machine Learning). For example, your risk team may want to find out if your financial exposure on services your firm provides is too high for the price of the contract. One would track the indemnification/exposure amount in a contract field along with the contract value for each contract record. The user can then use VISDOM to detect patterns and determine if the two data points are correlated and to help make recommendations. The VISDOM engine will inform you if there is a correlation, if the correlation is positive or negative (a positive correlation may be the higher indemnification exposure as the contract value increase). the rule can be saved and reprocessed to re-evaluate this risk periodically. As a benefit, it can provide onscreen alerts if there are outliers (such as “this contract has 20% higher exposure versus similar contracts”). Moreover, VISDOM measures the amount of indemnification (or financial exposure to your company) for similar services related to the contract price.
Text and Word/Phrase Mining of Document Text Contract Language, Clauses, Terms.With VISDOM artificial intelligence, risk detection of phrases, words, and clauses is easier. The system reads document text and makes recommendations based on the information learned. For example, a good risk mitigation practice is to review terms, conditions, and requirements in contract language to determine if the contract is of an acceptable level of risk to your organization. Next, the risk manager (or attorney) determines if the risk can be mitigated by an addendum to the terms, a new contract at renewal time, or implementation of risk mitigation controls and monitoring. Included in CobbleStone Software Enterprise Edition is a risk engine to help read contract document text, extract text and terms from files quickly, and provide alerts for outliers or items that may be risky to the organization. For example, risk analysis can be used to detect the governing law clause. You simple teach (configure) the rules engine to recognize the term governing law (and applicable variants thereof). Then the next time a contract record is uploaded, VISDOM will review the document and extract text in proximity to the phrase governing law.Another example is searching for PII, personally identifiable information. If you want to review contract documents [when loaded to the system] that contain personal information such as an employee name, email address, customer name or email address, bank routing numbers, or credit card numbers. VISDOM can check the document against the counterparties and employee contact information in Cobblestone Software and extract the data.Additionally, VISDOM can recognize patters that it has been taught to locate money, social security numbers, bank routing numbers, and other sensitive data in documents. This process is great for detection of words, phrases, and risk data when new contract is added. Keep in mind that this is not an exact process as text may be derived from scanned documents, OCR which is not perfect, and the terms of a contract may be offset by other clauses and exhibits. Always have an attorney review your contracts for legal interpretation. See below to perform mass extraction on existing documents.
Bulk Extraction of Text and Clauses in Document Text and Contract Documents.With VISDOM artificial intelligence, bulk extraction of phrases, words, and clauses is easier. For example, you are a new general counsel or risk manager and need to find out into which contracts your company has entered to have an option to purchase properties under lease. If you have 100 lease documents to review, that review may be easy to do as a human. However, if you have thousands of contracts to read and review in a short amount of time, this would be incredibly time consuming for a human, but it is easy to load the contract files into CobbleStone Enterprise Software, let VISDOM detect the text, and then run a job to detect words and phrases and extract the text for legal review. For this example, we just enter in the words we want VISDOM to find, such as option to purchase, purchase options, purchase, and other variants of this word or phrase. Next, we let VISDOM review/read all the text files in its data store and extract the paragraphs and words in proximity to each of these words/phrases it was taught. VISDOM then provides a spreadsheet of each file that contained these words/phrases and the text in proximity to the words/phases. A risk manager or a legal profession can then interpret the results. This process is great for detection of words, phrases, and risk data for a large amount of contract documents. Keep in mind that text extraction is not an exact process as text may be derived from scanned documents, OCR which is not perfect, and the terms of a contract may be offset by other clauses and exhibits. Always have an attorney review your contracts for legal interpretation.