Understanding Risk Detection

Risk detection is one of the most powerful features of the Lawis CLM module. The AI scans your contract and flags clauses that could expose you or your client to legal, financial, or operational risk — before the contract is signed.

What the AI looks for

The risk engine analyzes contracts at the clause level, identifying issues including:

• Unfavorable terms — Clauses that heavily favor the other party, such as unlimited liability, unilateral termination rights, or one-sided indemnification
• Missing standard clauses — Provisions commonly included in this contract type that are absent, such as a force majeure clause or a dispute resolution mechanism
• Compliance issues — Terms that may conflict with applicable law in the chosen jurisdiction, such as non-compete clauses that exceed statutory limits
• Ambiguous language — Vague or undefined terms that could lead to interpretation disputes
• Payment risk — Payment terms that are unusual, undefined, or potentially problematic
• IP ownership concerns — Unclear ownership of intellectual property created under the contract

Risk levels

Each identified risk is assigned one of three severity levels:

• High — Requires immediate attention. This clause could expose a party to significant legal liability or financial loss. Should be addressed before the contract is signed.
• Medium — Should be reviewed and considered. The clause may be acceptable depending on context, but it's worth negotiating or clarifying.
• Low — Minor concern or informational note. Generally acceptable but worth being aware of.

Acting on risk findings

For each risk finding, the AI provides:

• The specific clause that triggered the finding (with a link to jump to it in the editor)
• An explanation of why this is a risk and what could go wrong
• A suggested revised clause that addresses the issue — you can copy it directly into the editor

To address a finding:

1. Click the risk item

   The relevant clause is highlighted in the editor and the AI's explanation appears in the panel.

2. Review the suggestion

   Read the proposed revision and decide whether to accept it, modify it, or address the risk in a different way.

3. Edit the contract

   Apply your changes in the editor. Once addressed, you can re-run the analysis to confirm the risk has been resolved.