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Retrieved from DiscoverArchive,
Vanderbilt Universities Institutional Repository
This is a precopyedited, author produced PDF of an article accepted
for publication in the American Law and Economics
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How to fill out probabilistic recovery in contracts
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Identify the specific contract that requires probabilistic recovery.
02
Understand the terms and conditions of the contract, particularly in relation to recovery and risk allocation.
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Determine the specific events or triggers that could lead to the need for probabilistic recovery.
04
Assess the probability and potential impact of these events on the contract.
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Develop a probabilistic recovery plan that outlines the steps and actions to be taken in the event of recovery.
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Consider the use of probabilistic models or simulations to estimate the recovery amount and adjust contractual obligations accordingly.
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Implement the probabilistic recovery plan and monitor its effectiveness.
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Review and update the probabilistic recovery plan regularly based on changing circumstances or new insights.
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