Complete guide to creating a business contingency plan
Posted: Sun Dec 22, 2024 4:53 am
If there is a golden rule in the business world, and one that played taiwan contact number a key role in 2020, it is this: you cannot change, control or avoid environmental contingencies , since, as its own definition explains, they are unpredictable.
Given this reality, many circumstances have the potential to disrupt your business or, in the worst case, shut it down: natural disasters, pandemics, data theft, employee injuries are just four examples of the endless contingencies that can occur.
However, and here is the good news, your company can be prepared to minimize environmental threats when these events occur, through contingency planning .
In the following lines we will teach you how to make a business contingency plan step by step . But first, we will start with some basic definitions…
What is a contingency plan?
A contingency plan is a document that determines the actions that the management of a company or organization must take to respond to an event that may (or may not) occur in the future.
It serves as a “plan B” or backup plan that has to do with preventive risk management.
Its purpose is to inform you about everything that needs to be done and the resources that must be available, in order to minimize any damage to your company and thus keep it safe and stable.
The damages can be economic, technological, advertising, infrastructure, workforce, among others.
Although we gave you some catastrophic examples at the beginning, the truth is that a contingency plan does not necessarily have to prepare your company for a negative event. It can do so for an unexpected increase in sales due to a large order, or a large donation in the case of a non-profit organization.
Contingency plan and crisis plan: are they the same thing?
No. A crisis management plan is based on responding to an event that has just happened, while a contingency plan seeks to anticipate future situations. Although, certainly, a contingency plan can help you better deal with a crisis when it occurs; that is its importance.
Steps to create a contingency plan
It is recommended that contingency plans be based on a risk analysis. So, among the steps, we will also teach you how to carry one out. Ready? Let's get started!
steps-to-create-a-contingency-plan
1. Identify your company's key resources or assets
To carry out a risk analysis and, in turn, a contingency plan , you must know your company thoroughly: how its processes work, what it depends on, and what its strengths and weaknesses are.
The purpose of this is to be able to identify in this section of the document the essential resources that your company cannot operate without. For example: human resources, information systems, infrastructure, inventory, among others.
So in this first step, explain in detail the assets that must be preserved by your company to ensure its continuity and stability in the event of a contingency, emergency or crisis.
To create a simple asset inventory, you can create a table or chart in the document as follows:
Given this reality, many circumstances have the potential to disrupt your business or, in the worst case, shut it down: natural disasters, pandemics, data theft, employee injuries are just four examples of the endless contingencies that can occur.
However, and here is the good news, your company can be prepared to minimize environmental threats when these events occur, through contingency planning .
In the following lines we will teach you how to make a business contingency plan step by step . But first, we will start with some basic definitions…
What is a contingency plan?
A contingency plan is a document that determines the actions that the management of a company or organization must take to respond to an event that may (or may not) occur in the future.
It serves as a “plan B” or backup plan that has to do with preventive risk management.
Its purpose is to inform you about everything that needs to be done and the resources that must be available, in order to minimize any damage to your company and thus keep it safe and stable.
The damages can be economic, technological, advertising, infrastructure, workforce, among others.
Although we gave you some catastrophic examples at the beginning, the truth is that a contingency plan does not necessarily have to prepare your company for a negative event. It can do so for an unexpected increase in sales due to a large order, or a large donation in the case of a non-profit organization.
Contingency plan and crisis plan: are they the same thing?
No. A crisis management plan is based on responding to an event that has just happened, while a contingency plan seeks to anticipate future situations. Although, certainly, a contingency plan can help you better deal with a crisis when it occurs; that is its importance.
Steps to create a contingency plan
It is recommended that contingency plans be based on a risk analysis. So, among the steps, we will also teach you how to carry one out. Ready? Let's get started!
steps-to-create-a-contingency-plan
1. Identify your company's key resources or assets
To carry out a risk analysis and, in turn, a contingency plan , you must know your company thoroughly: how its processes work, what it depends on, and what its strengths and weaknesses are.
The purpose of this is to be able to identify in this section of the document the essential resources that your company cannot operate without. For example: human resources, information systems, infrastructure, inventory, among others.
So in this first step, explain in detail the assets that must be preserved by your company to ensure its continuity and stability in the event of a contingency, emergency or crisis.
To create a simple asset inventory, you can create a table or chart in the document as follows: