Contingency Plan
CONTINGENCY contingency plan is a plan devised for an outcome other than in the usual (expected) plan.[1]
It is often used for risk management when an exceptional risk that, though unlikely, would have catastrophic consequences. Contingency plans are often devised by governments orbusinesses. For example, suppose many employees of a company are traveling together on an aircraft which crashes, killing all aboard. The company could be severely strained or even ruined by such a loss. Accordingly, many companies have procedures to follow in the event of such a disaster.
Also known as a worst-case scenario plan, backup plan, or a disaster recovery plan, the contingency plan is simply a secondary or alternative course of action that can be implemented in the event that the primary approach fails to function as it should. Plans of this type allow businesses and other entities to quickly adapt to changing circumstances and remain in operation, sometimes with very little inconvenience or loss of revenue. It is not unusual for organizations of different types to have both a master contingency plan that is relevant to the entire organization, as well as plans that are geared toward rapid response in specific areas of the operation.
A contingency plan is often developed by identifying possible breakdowns in the usual flow of operations, and developing strategies that make it possible to overcome those breakdowns and continue the function of the organization. For example, if a business depends heavily on telephone communications to conduct business, the contingency plan may be to create a secondary wireless network that can be activated in the event that the public telephone lines are disabled by some type of disaster. Ideally, the cut over to the wireless network would be seamless, and not interfere with communications for more than a moment or two.
Contingency Planning
Developing a Good 'Plan B'
Have a solid Plan B ready.
© iStockphoto/WendellFranks
Fires,
It is often used for risk management when an exceptional risk that, though unlikely, would have catastrophic consequences. Contingency plans are often devised by governments orbusinesses. For example, suppose many employees of a company are traveling together on an aircraft which crashes, killing all aboard. The company could be severely strained or even ruined by such a loss. Accordingly, many companies have procedures to follow in the event of such a disaster.
Also known as a worst-case scenario plan, backup plan, or a disaster recovery plan, the contingency plan is simply a secondary or alternative course of action that can be implemented in the event that the primary approach fails to function as it should. Plans of this type allow businesses and other entities to quickly adapt to changing circumstances and remain in operation, sometimes with very little inconvenience or loss of revenue. It is not unusual for organizations of different types to have both a master contingency plan that is relevant to the entire organization, as well as plans that are geared toward rapid response in specific areas of the operation.
A contingency plan is often developed by identifying possible breakdowns in the usual flow of operations, and developing strategies that make it possible to overcome those breakdowns and continue the function of the organization. For example, if a business depends heavily on telephone communications to conduct business, the contingency plan may be to create a secondary wireless network that can be activated in the event that the public telephone lines are disabled by some type of disaster. Ideally, the cut over to the wireless network would be seamless, and not interfere with communications for more than a moment or two.
Contingency Planning
Developing a Good 'Plan B'
Have a solid Plan B ready.
© iStockphoto/WendellFranks
Fires,