Contingency planning is not just about major natural calamities and natural crisis but it can also mean the problems such as loss of data, staffs and customers related to the company or any other business relationships. So it is very much important to conduct contingency planning a routine part in your business.
In this article, we together will explore the key elements of contingency planning in business so that there is a backup option, which your things turn out wrong. So without any further roll, let’s begin.
You must conduct a risk assessment
Contingency planning is one who response to high risk. But in some cases it may be safer and even cost-effective to tackle.
Conduct a risk assessment to avoid any kind of risk. Prepare a risk probability chart to analyse the impact of each risk. These are best way to determine the impact.
What does a contingency plan cover?
A well and good contingency plan prevent your business from ‘going under’ when any unexpected things occur. So it is must to prepare a good contingency plan.
Below are some of the key elements of contingency plans. Scroll it down to read.
- Scenarios: You should always refer to your risk assessment chart and select the most damaging scenario and you plan accordingly to recover from it. Always aim to include a broad range of scenarios like- structural problems of your business premises, absence of staffs for a long time and many more.
- Triggers: Try to figure out the exact cause you will put your contingency plan into action. One or each incident can also have multiple triggers which will initiates a different part or angle of your plans.
- Who to inform: You have to identify the people whom you need to about what is happening. These may include employees, suppliers, customers and mass media public, as it appropriate. You must be aware of your legal obligations and it must reported to the proper authority whenever needed.
- Identity your main responsibilities: You must be responsible for defining who is most responsible for each element of the contingent plan and who will in-charge at each stage and step and what you expect them to accomplish.
- Timeline: Create a your own timeline- what things you need to do first within the first hour of day, week. You must implement the plan in a proper manner. Also mention details of when you would expect regular and normal business and what will signify that your organization is prepare for it.
Developing your contingency plan for your business
Whenever you create or develop your contingency plan for your business, you must remember that your main and first objective is to maintain or restore critical business operations. So you have to keep a deep look at how these situations may affect by each scenario. Be aware of know on effects and crisis.
Keep it a simple fluid language
When you prepare your contingency plans, you must use simple and fluid language. You do not know who will read and implement it, so it is better to keep the plans for your business in a plain and lucid language. This will help to keep your plans relevant without forming any changes in personnel.
How to maintain your contingency plans for your business
The simplest and easiest way to maintain your contingency plans for your business is to review and update regularly, if you want to remain useful and credible. Keep a back- up plan, so if there any occur of problems you can check the back-ups in your convenient time.