I am having a hard time interpreting the meaning of information given below:
The law is replete with terms of art such as "reasonable, foreseeable, and material." Therein lies both a problem and an opportunity for the risk manager.
That is, it is clear that when an incident occurs, there is a keen need for initial investigation directed at gathering evidence. Both sides would want to follow this tactic in every case.
Evidence needs to be collected before it can be altered or destroyed. Your role in gathering evidence to support your defense, or to further your case if your business is the moving party, is critical. It is a key aspect of management. Checklists of what should be done are needed, and they should be acted upon quickly. You can use your contracts and their provisions to be sure this information is going to be preserved.
The idea is to show that you really have been wronged as you claim, or if you are defending, to show that you are not liable, and that either the complaining party or some other party is liable for the wrong claimed. Whether you are trying to show that you were reasonable, or that an act was or was not material, etc., evidence is always the key. To the extent that contracts can be used to collect and preserve evidence, they have an increase in utility value for your business.