Each clause is assigned a risk level based on its potential impact:
| Level | Meaning | Action |
|---|---|---|
| Low | Standard clause, acceptable terms | No action needed |
| Medium | Minor concerns, review recommended | Consider negotiation |
| High | Significant risk, unfavorable terms | Negotiate or escalate |
| Critical | Major liability or compliance issue | Immediate attention required |
| N/A | Informational clause | No risk assessment applicable |