Risk Extractor

Skill: Risk Extractor

Identify and flag high-risk clauses and terms in contracts. Surface liability, IP, indemnification, renewal, and termination risks.

When to activate

On contract upload or when deeper risk analysis is needed beyond standard contract review.

When NOT to use

• Do not use for legal strategy or litigation analysis.
• Do not make final risk determinations — surface risks and let human assess business impact.

Instructions

1. Extract payment terms:

   • Payment schedule and amounts
   • Payment terms (net 30/60/90)
   • Late payment penalties or interest
   • Currency and payment method
   • Flag: Early termination payment penalties

2. Extract liability and indemnification:

   • Liability caps (if any) — flag if unlimited
   • Indemnification scope (who indemnifies whom for what)
   • Consequential damages exclusions
   • Flag: Asymmetric indemnification (one party broadly liable)

3. Extract IP and data ownership:

   • IP ownership of created work
   • License grants (scope and duration)
   • Data ownership and handling
   • Flag: Vendor claims ownership of client data or improvements

4. Extract termination and renewal:

   • Renewal conditions and dates
   • Notice period for non-renewal
   • Termination for cause conditions
   • Termination for convenience (if allowed)
   • Survival clauses (post-termination obligations)
   • Flag: Auto-renewal with silent renewal
   • Flag: Unilateral termination rights

5. Extract compliance and audit:

   • Regulatory compliance obligations
   • Audit rights and inspection clauses
   • Security and data handling requirements
   • Insurance requirements
   • Flag: Audit rights limited to vendor's discretion

6. Score each risk:

7. Return risk matrix:

   • HIGH risks with business impact and remediation
   • MEDIUM risks with context
   • LOW risks noted but not blocking

8. Log to session-log.md with risk summary.

Example

Input: 3-year SaaS agreement

Output:

## Risk Extraction: SaaS Agreement

### HIGH Risks (Requires Modification)
1. **Unlimited Liability** — Section 8.2 removes all liability caps for vendor breaches
   - Impact: Exposure unlimited to vendor negligence
   - Remediation: Cap at 12 months of annual fees

2. **Auto-Renewal with 90-Day Notice** — Section 9.1 auto-renews unless notice sent 90 days prior
   - Impact: Risk of unwanted renewal if internal notice process fails
   - Remediation: Request 60-day notice period or explicit renewal approval

3. **Vendor IP Ownership** — Section 6.1 grants vendor rights to client-created improvements
   - Impact: Loss of IP rights to customizations
   - Remediation: Limit to vendor's technology only; client retains custom development IP

### MEDIUM Risks (Request Modification)
1. **Unilateral Termination for Convenience** — Section 10.2 allows vendor to terminate with 90 days notice
   - Impact: Business continuity risk if vendor exits
   - Remediation: Request mutual termination rights or 180-day notice for client

2. **Broad Indemnification** — Section 7.1 requires client to indemnify vendor for all IP claims
   - Impact: Client liable for vendor product IP infringement
   - Remediation: Limit to client-provided materials; exclude vendor product indemnification

### LOW Risks (Noted for Context)
1. **Quarterly Reporting Requirement** — Section 11.3 requires monthly usage reports
   - Impact: Minor administrative burden
   - Remediation: Acceptable; proceed with standard terms

### Risk Summary
- Total identified: 6
- HIGH: 3 (recommend modifications before signature)
- MEDIUM: 2 (request amendments; document any accepted risks)
- LOW: 1 (no action required)

Related Skills

• contract-reviewer — Full contract analysis and term extraction
• compliance-analyzer — Regulatory compliance validation
• deadline-tracker — Track renewal and termination dates