What is an Approval Path and how do you configure it in CLM?

• A. A sequence of approvers; configure routing, required approvals, and escalation rules.
• B. A static list of users who can view the contract.
• C. A set of audit logs for approvals.
• D. A method to auto-approve contracts after a time delay.

Answer: (A)

An Approval Path in CLM is the defined sequence and rules for routing a contract through approvals. It specifies who must approve, the order in which they review, whether steps run serially or in parallel, and what happens if someone delays, changes their mind, or rejects. You configure it by creating an approval path template, adding steps with assigned approvers or roles, deciding if each step requires a single approval or multiple, and setting routing behavior plus escalation—such as timeouts, alternate approvers, and notifications. This path is then applied to a contract or template so every instance follows the same controlled workflow from initiation to final approval. The concept focuses on how approvals are requested, paced, and escalated, not on who can view the contract, audit records, or automatic approval after a delay, which are separate features.