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John Spacey, February 26, 2016 updated on September 01, 2017
Contingency planning is the process of planning for risks that disrupt your primary plans. The following are illustrative examples.DisasterA school near the sea plans for a tsunami. This includes a detailed evacuation route, procedures, roles & responsibilities, training and regular drills that are evaluated to drive improvements.
EnvironmentA city plans what it will do if air quality reaches dangerous levels. For example, they may identify sources of pollution that will be shutdown in an environmental emergency.Infrastructure & FacilitiesA firm plans what it will do if an entire data center goes offline for an extended period of time due to damage to infrastructure such as solar panels, electrical grids, telecom networks, roads and/or the facility itself.
PartnersA firm plans what to do if they lose a major partner. For example, an electronics manufacture that makes contingency plans for the loss of a core supplier.TalentA firm relies on the instincts and creative talent of a chief design officer who has consistently developed winning products. They plan what to do if the designer leaves the firm. For example, they may plan a professional development program that allows 6-12 designers to acquire the abilities required to one day assume the chief design position.
MarketsA firm plans what they will do if a major product update fails on the market.PoliticalA company plans what to do if political instability impacts its supply chain in a particular country or region.TradeA company plans what they will do if a trade war and resulting trade barriers causes their products to be uncompetitive in foreign markets.
PricesA farmer plans what to do if corn prices fall dramatically such that it is no longer a viable crop on her land.|
| Type | | | Definition | The process of planning for risks that disrupt your primary plans. | | Related Concepts | |
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