Contingency planning puts in place measures to address the identified risks in marketing a product or service. They reduce the risks of not meeting marketing targets in production by developing disaster recovery plans and ensuring availability of trained employees with succession plans .
A contingency plan is a plan devised for an outcome other than in the usual (expected) plan . Contingency plans are often devised by governments or businesses. For example , suppose many employees of a company are traveling together on an aircraft which crashes, killing all aboard.
Contingency means something that could happen or come up depending on other occurrences. An example of a contingency is the unexpected need for a bandage on a hike. An example of contingency is a military strategy that can’t go forward until an earlier piece of the war plan is complete.
The four steps below show you how to develop a business contingency plan to help you prepare for the unexpected. Identify the risks. Before you can prepare for a disaster, you need to know what disasters you’re preparing for. Prioritize the risks. Develop contingency plans . Maintain the plan .
The contingency plan is a proactive strategy, different from a crisis management plan , which is more of a reaction to something that happened. A contingency plan is set up to account for those disruptive events, so you’re prepared if and when they arrive. Related: Business Agility: What Is It & Why Is It Important?
The marketing process consists of four elements: strategic marketing analysis, marketing -mix planning, marketing implementation, and marketing control.
Here are the steps you need to follow in a contingency planning process. Step 1: List down the key risks. Step 2: Prioritize the Risks Based on Their Impact. Step 3: Create Contingency Plans for Each Event. Step 4: Share and Maintain the Plan .
Creating your contingency plan Identify your resources and prioritize them. Do research throughout the organization so you can identify then prioritize the integral resources in your organization. Identify the most significant risks. Draft a contingency plan template . Share the plans . Maintain the plans .
The key elements of a contingency plan are “protection, detection, and recoverability.” CONTINGENCY PLANNING exists; is communicated to employees; and. is tested regularly.
“The purpose of any contingency plan is to allow an organization to return to its daily operations as quickly as possible after an unforeseen event. The contingency plan protects resources, minimizes customer inconvenience and identifies key staff, assigning specific responsibilities in the context of the recovery .”
A contingency is an event you can’t be sure will happen or not. The noun contingency describes something that might or might not happen. We use it to describe an event or situation that is a possible outcome but one that’s impossible to predict with certainty.
Gain Contingencies in Financial Statements Since the precise amount of a potential gain from a gain contingency is unknown, it is not recorded in accounting . However, it may be disclosed in the notes of a financial statement if the amount of gain is expected to be significant.
The 4 Types of Plans Operational Planning . “Operational plans are about how things need to happen,” motivational leadership speaker Mack Story said at LinkedIn. Strategic Planning . “Strategic plans are all about why things need to happen,” Story said. Tactical Planning . Contingency Planning .
What is the first step in beginning the contingency planning process ? To begin the process of planning for contingencies , an organization must first establish an entity that will be responsible for the policy and plans that will emerge from the process .
A good contingency plan should include any event that might disrupt operations . Here are some specific areas to include in the plan : Natural disasters, such as hurricanes, fires, and earthquakes. Crises, such as threatening employees or customers, on-the-job injuries, and worksite accidents.