![planning expert clipart planning expert clipart](https://thumbs.dreamstime.com/z/meticulously-designed-business-expert-team-icon-business-expert-team-icon-147234131.jpg)
Identifying these areas helps you move on to the next step as you begin brainstorming possible scenarios that can impact them. Given this, you want to be prepared for anything and everything that may happen that can affect the critical areas, whether positive or negative. Other areas are important, but these are the main functions that keep you afloat. You can think of it like this: these critical areas keep your business up and running on a day-to-day basis. As these operations are imperative to success, you need to have plans to ensure that these operations continue, regardless of whatever scenarios arise. This first step is the most important aspect of your planning, as it sets the tone for why your plans need to exist in the first place.ĭuring this phase, identify all critical areas essential to keeping your business up and running every day. These scenarios aren't necessarily going to happen, but if there is a possibility that they'll affect your business, you're prepared if they do.īelow we'll discuss the steps that go into contingency planning. What if your storefront floods? Or what if your supplier goes out of business? The responses to the what-ifs are contingency plans.
Planning expert clipart how to#
Contingency Planning: How to Make a Business Contingency PlanĬreating a contingency plan is responding to the question of "What if?" To ensure your business is prepared for everything, it's crucial to understand how to create a contingency plan. If your business also uses contingency plans, it could be part of the strategies and requirements section, which dictates how your business will respond to a crisis if it occurs. You can think of it like this: your continuity plans contain five sections: program administration, governance, business impact analysis, strategies and requirements, and training and testing. Being able to react and take action during a crisis can dictate whether or not your business can emerge from the other side and continue normal business operations. A contingency plan is an action plan that goes into place if an incident were to happen.Ĭontingency plans can significantly impact whether your business can achieve continuity. Continuity is the ability of your business to continue functioning after an incident that has disrupted operations occurs. Contingency PlanĪlthough their names vary by few letters, business continuity and contingency plans are different concepts. The goal of your contingency plan is to help your business stay up and running after an issue arises. It is essentially the backup plan that goes into action when the worst-case scenario occurs. What Is a Business Contingency Plan?Ī business contingency plan is a strategy that outlines the steps your business’ teams will take in the event of a crisis occurring. However, a contingency plan can help you with crisis management when issues arise. This is a good scenario, but you will still need to adapt your operations to scale and appropriately meet the new demands of your growing audience.Ĭontingency planning is also different from crisis management, as it is not a reaction to something that has already happened but more so a plan for if and when something may happen. For example, you may experience a significant increase in revenue during a specific period due to changes in market behavior. These plans shouldn't focus solely on situations that may harm your business.
![planning expert clipart planning expert clipart](http://socialbarrel.com/wp-content/uploads/2017/03/marketing-strategy2.jpg)
Contingency planning is a proactive process of creating a strategy to help you prepare for any scenario that can affect your business, regardless of the likelihood of its occurrence.