When we introduced the LinkSquares Risk Scoring Agent and Risk Scoring Dashboards, the goal was simple: help legal teams quickly identify, quantify, and prioritize contract risk at scale.
But like any powerful tool, your results will depend on how you set it up and how you use it. Based on feedback from early adopters and guidance from our Analyze and Finalize Knowledge Base resources, we’ve put together this best practices guide and FAQ to help you get the most value from your investment so you can better detect and respond to risk.
1. Best Practices for Naming Risk Areas
The LinkSquares Risk Scoring Agent lets you define the risks it searches for, starting with what those risks are called. These risk factor names are used (and interpreted) by the AI performing the risk analysis and people beyond the legal team.
Keep it brief but descriptive
The name should be short but unique. Each risk is different and the name should reflect those differences so that the AI and cross-functional teams interpret each risk as intended.
Avoid jargon creep
Even inside legal, shorthand terms can get ambiguous. Stick to labels that make sense at a glance and only use jargon when necessary.
2. Best Practices for Defining Risks
The definition you give each risk factor is guidance for the Risk Scoring Agent on how to find and interpret your risk criteria, so be prepared to give it the right guidance.
Be specific
A vague definition like “look for old agreements” won’t produce consistent results. A stronger definition might be:
- “Agreement effective date is on or before August 1, 2020”
A vague definition like “Agreement has unfavorable governing law or jurisdiction” won’t produce consistent results. A stronger definition might be:
- “Agreement governing law is not the State of Delaware”
Avoid multi-part definitions
If your definition contains multiple, unrelated concepts, split them into separate risk areas. This prevents scoring confusion and helps with reporting accuracy.
Keep it simple
Treat your risk definitions like instructions to a contract analyst; keep them clear, concise, and unambiguous.
3. Best Practices for Weighting Risks
Not all risk is created equal. And risk differs from organization to organization. Your weighting scale determines the impact each factor has on the final score. Setting this correctly ensures your final risk score accurately reflects your true business priorities.
Start at the top
Identify your “dealbreaker” risks first -- those that would immediately halt or radically change your progress towards an agreement. Give these risks the highest weight.
Work downward
From there, assign progressively lower weights to risks with less severe impact, like administrative burdens or negotiable terms.
Keep it relative
The point of weighting is prioritization. A factor weighted at “10” should truly be 10x more impactful than one weighted at “1.”
4. Best Practices for Access and Workflow Integration
Managing risk is a shared responsibility, but the Risk Scoring Agent’s ease of use can create conflicting scoring priorities when too many cooks are in the kitchen.
Assign access strategically
Give scoring rights to the people who need them: typically legal, procurement, and compliance. This ensures the process stays consistent and credible, and your risk remains manageable.
Define guardrails
The agent’s “low risk” designation doesn’t necessarily mean the contract can skip legal review.
- Example: It might be reasonable for a sales rep to finalize an NDA that the agent scored as low risk without further review.
- Counterexample: That same policy could be risky for an MSA, where even a “low risk” score might miss deal-specific concerns.
Embed into your contracting process
Document where AI scoring fits into your contract processes. It can be before legal review, as part of redline triage, or in ongoing vendor management.
Frequently Asked Questions
Q: Should I customize risk factors for every contract type?
A: In most cases, yes. Your MSA risk profile will differ from your NDA’s, so tailoring risk factors by template or agreement type will produce better scoring accuracy.
Q: How often should I revisit my risk areas?
A: At least annually, or whenever there’s a change in your business risk environment (e.g., new regulations, market conditions, or corporate priorities).
Q: Can I use the same risk scoring project across multiple departments?
A: Yes, but be careful. Weightings and factor names should reflect a shared understanding across teams to avoid conflicting priorities.
Additional Resources
Effective results begin with effective setup
The LinkSquares Risk Scoring Agent is a force multiplier for your legal and compliance teams, but only if you configure it with clarity, consistency, and process discipline. By following these best practices for naming, defining, weighting, and controlling access, you’ll ensure your risk scores are accurate, actionable, and aligned with your business goals.
Because in the end, a “low risk” contract is only low risk if your organization has agreed on what that really means.
Want a personalized demo of our revolutionary Risk Scoring Agent? Contact LinkSquares today!
Risk Scoring Agent Quick Start Checklist
Download your own checklist here.
Your step-by-step guide to configuring and using LinkSquares Risk Scoring Agent effectively.
1. Name Your Risk Factors Clearly
___ Use brief but descriptive name
___ Avoid jargon unless necessary
___ Make names intuitive for non-legal stakeholders
2. Write Clear Risk Definitions
___ Avoid mixing unrelated risks into a single definition
___ Keep definitions concise and unambiguous
3. Set Weighting for Impact
___ Start with "dealbreaker" risks; assign highest weight
___ Work down to lower-impact risks
___ Ensure weights are proportional to real-world business impact
4. Assign Access with Intention
___ Limit scoring access to trained users (legal, procurement, compliance)
___ Define guardrails for when low-risk scores can skip legal review
5. Integrate into Your Contracting Process
___ Document where Risk Scoring fits in the workflow (pre-review, redline triage, ongoing monitoring)
___ Customize factors for different contract types
___ Establish a review schedule, minimum annually, to revise your risk definitions
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