contingency planning

• what is contingency planning

  • Preparing for predictable and quantifiable problems

  • Preparing for unexpected and unwelcome events
• what is the aim of contingency planning

  minimise the impact of a significant foreseeable event and to plan for how the business will resume normal operations after the event
• Contingency planning is one of the three approaches a business can take to manage risk, the others are

  Risk management - Identifying and dealing with the risks threatening a business

  Contingency planning - Planning for unforeseen events

  Crisis management - Handling potentially dangerous events for a business
• What do we mean by “risk” in business?

  • The possibility of loss or business damage

  • A threat that may prevent or hinder the ability to achieve business objectives

  • The chance that a hoped-for outcome will not occur
• What is Involved in Contingency Planning

  • Identifying what and how things can and might go wrong

  • Understanding the potential effects if things go wrong

  • Devising plans to cope with the threats

  • Putting in place strategies to deal with the risks before they happen