A contingency plan is a designed planning for a potential circumstance. This planning document may contain potential risk and its management for exceptional level of risky events. The contingency plan can also include the alternative action plans for effectively implement the plans for significant future event.
Actually the contingency plan is help to management & employees to quickly react on any potential risk or emergency. This may also help to ensure the potentiality of the risk with associate tasks and activities within the organization. The contingency plan is systematic process to organize the activities for improving business activities by identifying, tracking, and planning for potential risks. Even its provide an opportunity to get accurate track of possible improvement.
Where to use contingency plan?
Usually the contingency plan is requiring to prepare and execute to preventing unexpected or unwanted situation such as natural disasters, man-made disasters, data – information disaster or hacking, theft of organization, or any circumstances.
The plan may also include the smaller events, or any student events that directly risky for organization. Usually, the contingency plan may helpful to organizing risk management, crisis or project management for entire business.
Example:
A back-up plan for server management in IT segment or division is depends on the contingency plan or part of it. It may also include the budgeting, executions and implementation of entire plan. When any IT department expecting to preventing data from any disaster, data theft or hacking or any other situation. They need to develop contingency plan to prevent organize the procedure for ready to fight the situation.
How to create a Business Contingency Plan?
Usually, a business contingency plan is need to prepare on the existing condition or potentiality. The base of the contingency plan may be the discussions, brainstorming, and research. Hence, before the preparing a contingency plan, you have to do some exercise for create more effective plans.
Identify potential risks
Usually, identification of the potential risk which is associated with project, activities or manufacturing processes. This steps are taken on initiation of the planning phase. Remain all the activities are taken or its depend on the phase of the planning. Normally, contingency plan is help to manage the possible causes and its solutions. Hence, this step is very important to go ahead.
Even, you have to figure out vulnerable holes in the processes or in activities. In this phase, you can take single process or for sub-process. It can also possible focus on entire process map. But it is necessary to identifying risks and its level in the process.
Prioritize risks & Resources
Once you are identifying the risks from the various processes, it is very important to prioritize each risk at the various categories and levels. Even you have to also prioritize the resources that needs to control on the events, and potential changes occur with resources.
Normally, risks are prioritizing on base of the occurrence, severity and impacts. You can make the probability chart to accommodate level or risks.
Drafting contingency plans
Obviously, contingency plan is not for single risk or even, but may cover entire and critical issues within the organization. When you are going to create a contingency plan, you have to take care on setup the priority to planning and targeting the risks or event. Very first you have to understand the priority of the risks, levels and its category. Even how the risk is much associate with any process. You can also change the process or deploy substitute process for particular activities. Hence, during the creating a contingency plan, you have to take care about it.
First of all, list out all the steps which can be cover, plans, schedules, risks, activities, and solutions. This may be helpful to you for managing the planning phase. In some cases, you can create the timeline scale for describing or planning particular process or activity for precious shows.
Maintain the contingency plan
Creating a contingency plan is not enough, you have to reviews and update the plan timely. Even you have to ensure that each plan section should be cover the entire process, activities and risks. In case any update requires, it should be immediately review and change it accordingly.
Contingency plan examples
Documenting business contingency plan is action plan document for the potential incident and unexpected event. Usually, the plan may cover the actions management, priorities or activities and responsibility of individuals. Hence, it is very important for the organization to incorporate each possible activities and task in planning for minimizing the risks levels. Here are some of the best sample and example business contingency plan template may helpful for your business.
Business contingency plan Example:
A good contingency plan may help to preventing potential events or unexpected events, even provides a guidance to ensure that each tasks and its outcomes will be protecting the business values. Hence, contingency plan is very important for the business. But drafting and creating a good contingency plan example template can take the much time and money. Hence, we here providing ready made example template for the business contingency plan. This ready made template is easy for the customization and use.
The contingency plan is usually cover the most important questions such as what could be happen? what may response of the employee and staff during the event, and what will be organization can plan in advance to prepare, or preventing the hazards. The contingency plan should be cover the all potential or significant event which may create a risks.
Creating a contingency plan should be focus on the potential event, response, and prevention. This should be important for the business to create any preparation in advance to eliminate or response well during the occurrence of event. Here is ready made template which will be provide a structure or platform to makes easier for creating a contingency plan. You can download this ready made contingency plan examples & templates for free. Even you can modify this template as your business requirements.