Explain the contingency planning and how it works for a company?
Ans: Contingency planning is devloping preventive measures or plan in advance that might hamper the business. Although when it comes to contingency plan the negative things might come to mind first however an appropriate contingency plan should alwals take into consideration both negative and positive impacts.
A contingency plan should include various events that might occur in future and can positively or negatively impact operations.For example, natural calamities (Hurricane, earthquake, flood etc),loss of data in the event of natural calamities or any other cause such as criminal hacking,mismanagement, any kind of crisis such as inury of an employee, accidents,or product related issues.
In order to be a good contingency plan, it should first calculate and estimate the list of risks that might disrupt the operations, Creating likelihood of these events occuring can help give a better technique to handle.Assessing the risks and prioritsing can positively help the contingency planning.
Once the contingency plan is ready, effectively communicating plan to each level at the organisation is very important. Keeping the employees informed about their roles and responsibilities is a crucial step.Then follows drill sessions for suc events to prepare the employees .And finally reviewing such plan on a periodic basis.