The Red Flag Analysis dashboard is a powerful tool that allows you to scan and analyse all documents in your data room. It can be used for the following 2 use cases:
You can get any question answered based on a rigorous analysis of all documents in the data room.
You can search for a specific clause in the data room and even compare it with a clause you consider as the golden standard. If the document does not comply with the golden standard it will be flagged as a potential red flag.
Predefined Checks
To make it very straightforward to analyse the data room we created a set of predefined checks for you to work with. To get started just click the New check button illustrated below:
Now a popup window will open where you can select 1 or multiple predefined checks as shown in the screenshot below:
To make your life easy, we have categorized the checks in 9 different topics:
General: Checks that can occur in any contract not specifically tied to a particular topic like a Change of Control clause for example.
Legal: Checks that are linked to the legal entity of the company.
Commercial: Checks related to commercial contracts and relations.
Financial: Checks linked to the financial situation and structure of the company.
HR: Checks linked to HR like those found in contracts of employees and contractors.
IP: Checks linked to IP agreements like patents.
IT: Checks linked to IT infrastructure.
EH&S: Checks linked to Environment, Health, and Safety.
Tax: Checks linked to Taxation.
For the purpose of this tutorial, let's select HR at the top. From the HR clauses, let's select the following 5 checks:
Now let's click the Use 5 checks button. Once you have clicked this, all documents in the data room will be analyzed 1 by 1. And in the end for each of these checks you will get a summarized answer of what the system has found on these checks in the data room. For the ACME - Demo Data Room this will look like this:
You will see that some documents are marked with a Unspecified risk level (in gray). These are documents that Emma considers as a potential red flag and that require your review. Let's click on the Non-Solicitation of Employees check.
At the top of the page you will see the full summary of what the system has found in the data room. Below you can look at all the individual files. Let's click on Anna Doe - Independant Consultant - No Non-solicitation of employees.pdf. This document is marked with an Unspecified risk level. In the answer you will see that the system was unable to find any clause that prohibits the solicitation of employees. So this is a potential red flag.
On the right of the screen you can label this contract as High, Medium, Low, or No Risk. In the example below I labelled it as Medium risk and added a comment to make the future review easier:
Once you are done with your review of all the contracts. You can click on the Approve button at the top right to indicate you have reviewed all the contracts in the list.
Now your colleagues can see that you have approved the review and that it is ready to be incorporated in the red flag report.
Next steps
If you want to take it one step further you can:
More Information
If you require more information, don't hesitate to reach out to our support team through [email protected] or through the chat in the bottom right:
If you need additional help configuring the clause finder or you encounter any other problem, don't hesitate to reach out to us through the chat bubble in the bottom right or to [email protected]