Associate Professor, LL.D.
Petri Keskitalo


telephone: +47 776 44557
e-mail: petri.keskitalo@jus.uit.no

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Subject areas for research:

Contractual Risk Management (C-RM)

Contractual risk management is a term that is sometimes found in contract legal literature but seldom, if ever, one is able to find any definition of the term. In my recent research I have attempted to define the term based on a inter-disciplinary research combining legal, economic and risk management perspectives and theories. As a result, Contractual risk management can be defined as a practical, proactive and systematical contracting method that uses contract planning and governance to manage risks connected to business activities. The goal of C-RM is to function as an integrated part of the risk management activities of a firm, while operating from an internal perspective of the firms contracting activity. C-RM will also provide a common language between the different groups of professionals working with risk management.

The theoretical framework of C-RM has been developed in my dissertation: "From assumptions to risk management" Kauppakaari Oyj, Helsinki 2000. ISBN 952-14-0046-3 (see: Summary, Table of content, Update!), where I have schetched a theory of contractual risk management that is built upon an integration of the theoretical approaches of a theory of commercial contracts as managed processes, transaction cost economics theories of governace of commercial transactions and the theoretical foundations of the risk management discipline that is receiving increasing focus in business management.

The practical framework of C-RM originally presented in my dissertation is being developed further in:

- a paper on "Contractual Risk Management: Theory and Operative Models" (Sopimuksellisen riskienhallinnan teoria ja toimintamallit). Published in Soile Pohjonen (toim.): Ennakoiva sopiminen. Liiketoimien suunnittelu, toteuttaminen ja riskien hallinta. Helsinki 2002, ss. 241-273. WSOY Lakitieto. ISBN 951-670-065-9,

- a paper on "Contractual Risk Management in Transnational Sales Contracts" (ufinished) and

- Power Point presentation on "Contracts and Risk Management". Finnish version 30.10.2002. 

- Power Point presentation on "Contractual Risk Management in Transnational Sales Contracts" (version 13.02.2003).


Notice that the Power Point presentations are being continuously updated.


In these works, the practical framework of the C-RM developed further with help of theoretical models of operation for:


- strategic contractual risk management which focuses on the systematic development and management of a firm's contracting activities as a whole, and 


- operational contractual risk management which focuses on the management of a firm's single business transactions.

Efficient implementation of the C-RM in a firms everyday contracting activity presupposes that such theoretical models of operation for the firms strategic and operational contractual risk management are further developed and fine tuned according to the specific needs and resources of the firm. This can be achieved through development of practical procedures for the firms strategic and operational contractual risk management. 

The practical approach of C-RM has been integrated into teaching through the course in International Sales Law that is arranged in Spring semester.

If you are interested in the interplay between contracts and risk management, following links might be of interest:

National Contract Management Association (NCMA)

SME Risk Management Toolkit (eng, fin, ger, swe)

National Center for Preventive Law (NCPL)

Bibliography of literature on Preventive Law, compiled by Helena Haapio, Lexpert Ltd.


Tromsų 13.02.2003

Petri Keskitalo
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Last updated 13.02.2003