Contract Risk Assessment Template for Denmark

A Contract Risk Assessment is a structured review that helps Danish businesses identify and evaluate potential problems in their commercial agreements before signing. It looks at key issues like legal compliance with Danish contract law, financial exposure, delivery risks, and data protection requirements under GDPR and local regulations.

Legal teams and business managers use these assessments to spot warning signs, negotiate better terms, and protect their organizations from costly disputes. The process typically covers important Danish legal requirements like forbrugeraftaleloven (consumer contracts law) and focuses on specific risks in areas like liability caps, termination rights, and force majeure clauses that could impact business operations.

Start a Contract Risk Assessment before entering any high-value commercial agreements or when dealing with new business partners in Denmark. This review becomes essential when negotiating complex service contracts, international trade deals, or agreements involving sensitive data under Danish privacy laws.

Timing matters - conduct the assessment early in contract discussions to strengthen your negotiating position. Critical moments include expanding into new markets, taking on significant financial commitments, or when contracts involve strict regulatory requirements like GDPR compliance. Running this analysis after signing leaves you exposed to preventable risks and limits your options for protecting your interests.

• Basic Risk Review: Quick assessment for standard commercial contracts, focusing on fundamental Danish contract law compliance and common business risks
• Comprehensive Due Diligence: Deep-dive analysis covering regulatory compliance, financial exposure, and operational impacts - typically used for high-value or complex agreements
• Industry-Specific Assessment: Tailored evaluation incorporating sector-specific regulations and risks, especially relevant for regulated industries like financial services or healthcare
• Data Protection Focus: Specialized review emphasizing GDPR compliance and data processing requirements under Danish law
• Supply Chain Analysis: Targeted assessment for vendor agreements, examining delivery risks, liability provisions, and force majeure considerations

• Legal Departments: Lead the assessment process and provide legal expertise on Danish contract law and regulatory requirements
• Risk Managers: Evaluate potential financial and operational impacts, especially for large-scale commercial agreements
• Business Executives: Review findings and make final decisions on contract negotiations based on identified risks
• Compliance Officers: Ensure alignment with Danish regulations, industry standards, and internal policies
• External Legal Advisors: Provide specialized expertise for complex contracts or industry-specific requirements
• Department Heads: Contribute operational insights about how contract terms affect their areas of responsibility

• Contract Details: Gather all contract documents, including main agreement, appendices, and any prior versions
• Business Context: Document the deal's value, strategic importance, and operational impact on your organization
• Party Information: Collect financial data and background on all contracting parties under Danish due diligence requirements
• Regulatory Check: List applicable Danish laws and industry regulations affecting the contract's subject matter
• Risk Categories: Create a structured checklist covering legal, financial, operational, and compliance risks
• Timeline Planning: Set realistic deadlines for review stages and involve key stakeholders early in the process

• Risk Overview: Clear statement of contract purpose and potential impact under Danish law
• Legal Framework: Identification of relevant Danish legislation and EU regulations affecting the contract
• Financial Exposure: Analysis of liability limits, payment terms, and potential monetary risks
• Compliance Requirements: GDPR obligations, industry-specific regulations, and reporting duties
• Performance Metrics: Key deliverables, timelines, and quality standards with risk ratings
• Mitigation Strategies: Proposed safeguards and fallback options for identified risks
• Approval Section: Dated signatures from authorized assessors and stakeholders

A Contract Risk Assessment differs significantly from a Data Protection Impact Assessment in both scope and focus. While both help organizations manage risks, they serve distinct purposes under Danish law.

• Scope of Review: Contract Risk Assessments examine all aspects of commercial agreements, including financial, operational, and legal risks. DPIAs focus exclusively on data protection and privacy implications.
• Legal Requirements: DPIAs are mandatory under GDPR for certain data processing activities, while Contract Risk Assessments are voluntary but recommended business practice.
• Timing and Duration: Contract assessments happen before signing agreements and during major contract changes. DPIAs must be maintained throughout the data processing lifecycle.
• Stakeholder Input: Contract reviews primarily involve legal and business teams, while DPIAs require input from data protection officers and often affected data subjects.