A-Z Popular Blog Risk Search »
Related Guides

Risk Management vs Contingency Planning

 , updated on August 31, 2023
Risk management is the practice of identifying, assessing, avoiding, mitigating, transferring, sharing and accepting risk.
Contingency planning is the practice of identifying steps to be taken if a risk occurs.

Risk Management vs Contingency Planning

Risk management is primarily focused on steps taken before a risk occurs. This can include techniques of reducing risk such as risk avoidance and mitigation. Risk management is also a process of formally accepting risks that are worth taking.
Contingency planning is planning steps to be taken when a risk occurs. A risk that actually occurs is generally referred to as an issue. It is common for issues to be managed as they occur without any pre-planning. Contingency planning is most often used for risks that are low probability but high impact such as a disaster.

Key Difference

The primary value of risk management is finding ways to prevent losses before they occur.
The primary value of contingency planning is improving the chances of surviving high impact risks.

Key Relationship

One aspect of mitigating risks is considering what to do when the risk occurs. Therefore, contingency planning is often viewed as a component of risk management.
Risk Management vs Contingency Planning
Risk Management
Contingency Planning
The identification, assessment, reduction and acceptance of potential losses.
Preplanning steps to be taken if a risk occurs.
Next: Contingency Planning
More about risk management:
AI Risk
Risk Avoidance
Brand Risk
Budget Risk
Business Risks
Change Risk
Compliance Risk
Concentration Risk
Cost Risk
Country Risk
Credit Risk
Demand Risk
Dread Risk
Economic Risk
Exchange Rates
Existential Risk
External Risk
Financial Risk
Force Majeure
Good Risk
Human Error
Risk Identification
Infinite Risk
Inflation Risk
Inherent Risk
Interest Rates
Internal Risks
Investing Risk
Legal Risk
Liquidity Risk
Model Risk
Moment Of Risk
Natural Disasters
Negative Risk
Operations Risk
Passive Risk
Personal Risk
Political Risk
Process Risk
Procurement Risk
Product Risk
Project Risk
Pure Risk
Quality Risk
Recession Risk
Risk Mitigation
Refinancing Risk
Regulatory Risk
Reputational Risk
Residual Risk
Resource Risk
Revenue Risk
Risk Appetite
Risk Aversion
Risk Examples
Risk Management
Risk Management Process
Risk Matrix
Risk Meaning
Risk Measurement
Risk Taking
Risk Tolerance
Risk Triggers
Risk vs Issue
Risk vs Opportunity
Risk vs Uncertainty
Risk-Reward Ratio
Seasonal Risk
Secondary Risk
Security Risk
Settlement Risk
Risk Sharing
Speculative Risk
Strategic Risk
Strategy Risk
Supply Risk
Systemic Risk
Tactical Risk
Taxation Risk
Technology Risk
Risk Transfer
Unforced Error
Upside Risk
If you enjoyed this page, please consider bookmarking Simplicable.

Risk Management

An overview of the risk management process.

Cascading Failure vs Resilience

An overview of cascading failure and resilience.

Business As Usual

An overview of business as usual.

Risk Mitigation

A list of techniques for reducing risk.

Risk Mitigation vs Risk Reduction

The difference between risk mitigation and risk reduction.

Risk Control

A list of common risk controls.

Risk Value

A definition of risk value with example calculation.

Risk Impact

The common types of risk impact.

Risk Communication

A definition of risk communication with examples.

Risk Management Process

Overview of the steps in a risk management process.

Risk Identification

The basics of risk identification.

Risk Intelligence

A definition of risk intelligence with illustrative examples.

Risk Register

A guide to creating a risk register with an example.

Risk vs Hazard

The difference between a risk and a hazard with examples.


The definition of hazard with examples.

External Risk

The definition of external risk with examples.

Brand Risk

The common types of brand risk.

Risk Meaning

The meaning of risk with examples.

Risk Objectives

Examples of measurable risk objectives.

Risk Characteristics

The basic characteristics of risk.

Risk Planning

An overview of risk planning with examples.
The most popular articles on Simplicable in the past day.

New Articles

Recent posts or updates on Simplicable.
Site Map