BELFORT
Risks

Risk Management

Belfort's risk module lets you identify, quantify and track contractual risks throughout the project lifecycle — manually or automatically via AI analysis of incoming emails.

What is a contractual risk?

A contractual risk is any event or situation that could trigger a financial or legal consequence under your contract — a delay, a disputed scope, a missed milestone, a force majeure claim. Belfort helps you track these risks before they become disputes.

Each risk is characterised by a probability, a direct cost, a status, and optionally a link to a contract milestone and its associated liquidated damages rule.

Risk lifecycle

1

Identification

A risk is created — manually by a team member, or automatically by the AI when it detects a threat in an inbound email (delay notice, non-conformity, claim signal).

2

Qualification

The risk is assigned a probability (%), a direct cost estimate, and optionally linked to an impacted milestone. If a liquidated damages rule is attached to that milestone, the LD exposure is calculated automatically.

3

Monitoring

As new emails arrive, the AI re-evaluates existing risks and updates their probability, cost or status. Every change is recorded in the risk history for full auditability.

Resolution

The risk is marked as mitigated or materialised. If materialised, it feeds into the contract's financial exposure dashboard.

Risk fields

Field Description
Title Short label identifying the risk.
Description Detailed explanation of the risk and its contractual basis.
Probability Likelihood of occurrence, from 0 to 100%. Used to compute the weighted exposure.
Direct cost Estimated financial impact if the risk materialises. Automatically calculated when a LD rule is linked.
Status Current state: open, mitigated, or materialised.
Impacted milestone The schedule event at risk. If a LD rule is attached to this milestone, the exposure is computed automatically.
Estimated delay Expected delay in days, used as input for the LD exposure calculation.
Mitigation plan Actions taken or planned to reduce the risk.

Dashboard KPIs

The risk page displays a set of KPIs computed in real time across all open risks:

  • Total direct cost — sum of direct costs across all risks, regardless of probability.
  • Weighted exposure — Σ (direct cost × probability / 100). The statistically expected financial impact across the risk portfolio.
  • Open risks — number of risks currently in open status.
  • Average probability — mean probability across open risks, indicating overall portfolio tension.
  • Delay impact — total estimated delay days across risks linked to a milestone.

AI-assisted detection

When an email arrives, Belfort's AI analyses its content against the contract's existing risks. It can:

  • Create a new risk if a threat is detected that does not match any existing entry.
  • Update an existing risk — raise or lower probability, revise cost, update status — based on new information in the thread.

Every AI action is traceable

All AI-triggered changes are logged in the risk history with the source email as reference. You can review and revert any AI decision at any time.

Back to documentation Liquidated Damages