Contract execution and performance is considered a critical success factor for organisations today.
The extent to which third party contracts are governed, risk managed and performance monitored, will fundamentally influence the extent to which an organisation has the ability to be operationally resilient, contingency planned and commercially and strategically successful.
Given that it is commonplace, for organisations to outsource and manage third party relationships contractually, it goes without saying that ‘keeping your arms’ around revenue, cost, risk and compliance contractual obligations is of paramount performance.
Many organisations generate revenues via royalties and licensing and may also have entitlements to discounts, rebates and incentive payments via preferred customer and volume-based arrangements.
Under these arrangements, payments and receipts are often based on financial data provided via a self-certification or self-declaration process which can be difficult to assess and verify. Robust controls that support the critical assessment, oversight and reporting of these arrangements are essential to assure the completeness and accuracy of related income streams and operational costs.
