CONTINGENCY PLANNING Flashcards
What is contingency planning
Contingency planning is the act of identifying internal and external threats to an organisation, and considering potential responses to them.
What does contingency planning include
Contingency planning
Risk management
Crisis management
What are some potential contingecies
An economic downturn
A new competitor enters the market
A new technology makes your product obsolete
A catastrophe
The revelation in the media of an internal scandal
A fire
What is the contingency planning process
Identifying the issues
Rate them in terms of ‘possible impact’ and ‘likelihood of occurring’
Prioritise
Set contingency plan
Communicate to the relevant people
Practice implementation
What is the value of contingency planning
Identifies potential issues
Considers the likelihood of occurring, and potential impact
Created clarity and focus should contingency occur
Encourages more flexible thinking should an unforeseen contingency occur
Better to have a plan that is never used that to not have a plan at all
