A contingency plan is a plan of action created by your business in response to possible future risks.
The purpose of the plan is to help your business remain proactive, ensuring you are prepared for any unlikely catastrophic events. While your business may not be able to avoid risk, you certainly can effectively plan for it, helping you be ready for action if disaster strikes.
Preparing a thorough contingency plan is the first step to ensuring your business is prepared for a crisis.
Planning is an essential part of operations management, offering a blueprint for how to deal with difficult and trying events before they occur.