Contingency planning and crisis management ✔️

Question 1

Purpose of a contingency plan

Answer 1

to provide a roadmap for how an organization will respond to unexpected events or circumstances that could negatively impact its operations. Designed to minimise the impact of unexpected events e.g. Covid

Question 2

Advantages of a Contingency plan

Answer 2

• the business will be prepared for unexpected events
• the businesses response time to the event will be quick
• better risk management
• increased confidence (owners & employees)
• improved resilience (owners & employees)

Question 3

Benefits to a business and its stakeholders of contingency planning

Answer 3

• protection of assets
• maintenance of operations
• enhanced reputation
• improved risk management
• increased organizational resilience

Question 4

Explain the need of crisis management

Answer 4

1. Identify the risks
2. Develop a plan
3. Present contingency plan to ky stakeholders
4. Test plan regularly
   5 review / update

Question 5

evaluate the crisis management

Answer 5

• was the business well prepared
• was the plan detailed enough
• how quickly did the business respond
• was communication effective
• Was the decision-making process during the crisis effective
• Was the allocation of resources during the crisis appropriate and effective
• what was the outcome of the crisis
• What lessons were learned from the crisis

Question 6

Disadvantage of a contingency plan

Answer 6

• it is costly
• takes time
• very complex
• only effective if it is up-to-date and relevant
• limited to the types of events
• employees may feel limited in their ability to respond creatively and effectively to crisis situations