A plan that prepares the organization to respond effectively for an unplanned event or crisis is contingency plan.
To make the contingency plan, first list out the problems that could go wrong in the business, and also should be able to foresee the future problems an organization might face.
This plan is basically made up of three major components:
- How to be prepared for the event
A crisis team should be formed to develop the effective contingency plan. The team should be selected from different departments and should have adequate knowledge and training in the contingency planning. A thorough idea of the roles and responsibilities during the crisis is mandatory.
The team should be able to identify and assess the business risks which could disrupt the business. After identifying the potential risks of each department, it is important to prioritize and allocate the available resources accordingly.
Clear set of steps should be included to achieve the ideal goal. It should be in the chronological order which explains the step by step action to be taken within the set timelines after the initial event.
- How to respond to the situation
How well we are prepared and the action plan set to overcome the incident during the actual event, shows the responsiveness or the alertness of the team
- Post event recovery
The clear plan of action need to be defined to get back to normalcy after the event has occurred