What Are The Steps In Contingency Planning?

What is meant by contingency planning?

Contingency planning is defined as a course of action designed to help an organization respond to an event that may or may not happen.

Contingency plans can also be referred to as ‘Plan B’ because it can work as an alternative action if things don’t go as planned..

What are examples of contingencies?

An example of a contingency is the unexpected need for a bandage on a hike. The definition of a contingency is something that depends on something else in order to happen. An example of contingency is a military strategy that can’t go forward until an earlier piece of the war plan is complete.

What are the 4 types of planning?

The 4 Types of PlansOperational Planning. “Operational plans are about how things need to happen,” motivational leadership speaker Mack Story said at LinkedIn. … Strategic Planning. “Strategic plans are all about why things need to happen,” Story said. … Tactical Planning. … Contingency Planning.

What makes a good contingency plan?

A good contingency plan should include any event that might disrupt operations. Here are some specific areas to include in the plan: Natural disasters, such as hurricanes, fires, and earthquakes. Crises, such as threatening employees or customers, on-the-job injuries, and worksite accidents.

What are contingencies?

Contingencies are conditions that must be met in order for a home sale to be finalized. Depending on which party arranges for contingencies, they act as an additional measure of assurance for the buyer, seller or both.

How do you test a contingency plan?

Methods for testing contingency plans to determine the effectiveness of the plans and to identify potential weaknesses in the plans include, for example, walk-through and tabletop exercises, checklists, simulations (parallel, full interrupt), and comprehensive exercises.

What is a contingency plan example?

A contingency plan is a plan devised for an outcome other than in the usual (expected) plan. … Contingency plans are often devised by governments or businesses. For example, suppose many employees of a company are traveling together on an aircraft which crashes, killing all aboard.

What are the different types of contingency plans?

9 Examples of Contingency PlanningDisaster. A school near the sea plans for a tsunami. … Environment. A city plans what it will do if air quality reaches dangerous levels. … Infrastructure & Facilities. … Partners. … Talent. … Markets. … Political. … Trade.More items…•

Why is contingency planning important?

The purpose of a contingency plan is to allow an organization to return to its daily operations as quickly as possible after an unforeseen event. The contingency plan protects resources, minimizes customer inconvenience and identifies key staff, assigning specific responsibilities in the context of the recovery.

What are the key elements of contingency planning?

The key elements of a contingency plan are “protection, detection, and recoverability.”…CONTINGENCY PLANNINGexists;is communicated to employees; and.is tested regularly.

Which is the first step in the contingency planning process?

What is the first step in beginning the contingency planning process? To begin the process of planning for contingencies, an organization must first establish an entity that will be responsible for the policy and plans that will emerge from the process.

What is the difference between contingency plan and emergency plan?

As nouns the difference between emergency and contingency is that emergency is a situation which poses an immediate risk and which requires urgent attention while contingency is (uncountable) the quality of being contingent, of happening by chance; unpredictability.