What is the purpose of contingency planning?
“The purpose of any contingency plan is to allow an organization to return to its daily operations as quickly as possible after an unforeseen event. The contingency plan protects resources, minimizes customer inconvenience and identifies key staff, assigning specific responsibilities in the context of the recovery.”
What are the three benefits of contingency plans?
What are the benefits of contingency planning?
- Saving time and money. When management knows an incident plan ahead of time, they. …
- Saving lives. Some disasters are life-threatening. …
- Quick recovery time. Contingency plans reduce response time, giving your team the. …
- Minimizing damage. …
- Avoiding negative press.
What are the benefits of a contingency plan?
Benefits of a Contingency Plan
A thorough contingency plan minimizes loss and damage caused by an unforeseen negative event. For example, a brokerage company may have a backup power generator to ensure that trades can be executed in the event of a power failure, preventing possible financial loss.
What are the key concepts of contingency planning?
The key elements of a contingency plan are “protection, detection, and recoverability.”
How important is contingency planning in the strategy evaluation?
In evaluating your business strategy, contingency plans should give your company the mobility necessary to shift focus to different aspects of your company and change operating strategies as needs in the market shift. Mobility is an essential element of contingency planning and your business strategy as a whole.