Contingency Planning and Crisis Management

Question 1

What is contingency planning?

Answer 1

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

Question 2

What is HR contingency planning?

Answer 2

Planning for if key employees leaving the business

Question 3

What is finance continency planning?

Answer 3

Planning for sales being lower than expected causing cashflow problems

Question 4

What is OPs contingency planning?

Answer 4

Planning for if a supplier fails to deliver on time, delivers the wrong quantity, ICT failure

Question 5

What is marketing contingency planning?

Answer 5

Planning for a recession, a new competitor

Question 6

What is firefighting?

Answer 6

Where a manager spends time trying to fix unforeseen problems and emergancies

Question 7

What is crisis management?

Answer 7

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

Question 8

What does crisis management deal with?

Answer 8

Events before, during and after they occur

Question 9

Ways of managing crises:

Answer 9

• Insurance
• Spare cash
• Private healthcare for key employees
• Data monitoring systems to spot crises coming
• Trial runs to see if plan works

Question 10

3 factors involved in responding to a crisis?

Answer 10

• Management response - assessing severity, contacting senior execs, implenting contingency plan
• Operational response - implenteng CPlanm, minismising impact on stakeholders
• Communications response - contacting key stakeholders, media briefing