A contingency plan typically includes multiple sections that cover different potential problems, each of which features a time line of actions to take after the event, the process for communicating with relevant parties and methods for mitigating any further damage. The plan may also feature charts depicting the potentiality of risks and the possible impact on the company, as well as steps to prevent the incident from happening again.Continue Reading
The first step to creating a contingency plan is to conduct a threat assessment within the company to identify the areas that are most prone to issues or would cause the greatest amount of harm to the company. After identifying the different potential issues for each department or segment of the company, it is important to rank them in order of priority to help allocate resources accordingly. Each major potential issue needs to have its own contingency plan, though some plans may function for dealing with different types of issues that have the same result.
Each section for a particular issue needs to include a clear set of steps to help achieve the ideal outcome in spite of the setback, such as issuing paychecks when the company's payroll clerk is out sick by designating another employee to complete the process. The steps should appear in a chronological format that explain the actions to take within set period of time after the initial event, such as within the first hour or first day.Learn more about Managing a Business