BS2- Contingency Planning And Crisis Managment

Question 1

What is contingency planning?

Answer 1

Planning for ‘what will happen if things go wrong?’ This means that an agreed course of action is in place and is ready to be used if necessary.

Question 2

What is the main aim of contingency planning?

Answer 2

To reduce the damage when some thing goes wrong.

Question 3

What are the four stages in contingency planning?

Answer 3

Step 1: List down the key risks
Step 2: Prioritize the Risks Based on Their Impact
Step 3: Create Contingency Plans for Each Event
Step 4: Share and Maintain the Plan

Question 4

Give an example of a marketing contingency plan

Answer 4

A sock to the economy would need a contingency plan for a drastic fall in sales

Question 5

Give an example of a contingency plan for operations

Answer 5

If a supplier was to not deliver a contingency plan would be to have a back up of where you can get the supplies from quickly

Question 6

Give an example of a finance contingency plan

Answer 6

If sales are below expectations then a good contingency plan would be something to increase them back up to expectations

Question 7

Give an example of a people contingency plan

Answer 7

Employees leaving the business, a good plan would be having people that can take the roles on quickly while they find a replacement

Question 8

What is crisis management

Answer 8

It is the process by which an organisation deals with an event that threatens to harm the business and its stakeholders

Question 9

List 3 possible solutions to dealing with a crisis

Answer 9

Insure that insurance policies are up to date and have full cover
Keep a cushions of cash in case of emergency
Have trial runs, e.g fire drill

Question 10

What are the 3 elements to an effective crisis response

Answer 10

Operational response
Management response
Communication response