Contingency Planning Contingency planning is the anticipation of what may happen, combined with the allocation of resources, and is assumed to maximize the chances of a successful response in time of crisis; however does not guarantee successful response (Eriksson & McConnell, 2011). Glendon (2013) presents contingency planning as a layer of a three-line defense termed the three Cs (3Cs) of business continuity: contingency planning, continuity capability, crisis response. Contingency planning is a provision for an event that is possible but cannot be predicted with certainty. He also considers the application of the 3Cs in the entertainment industry and banking, highlighting the need for the business continuity professional support within the organization.
Nejad, Noroomand and Kuzgunkaya (2014) discuss a contingency rerouting known as a cost-effective risk management strategy for major disruptions. The authors propose a mixed integer programming-based capacity planning tool to generate the contingency plan of the supply chain during disruptions, considering response time and congestion, especially critical when dealing with disruptions. This is in reference to the last decade disasters that affected the several supply chains for instance the Japan tsunami in 2011, September 11, 2001, to name a few. Contingency rerouting is applied to improve supply chain responsiveness to major disruptions (Nejad et al., 2014).
Contingency planning is not a recipe for guaranteeing
Good Business Continuity Planning starts with being proactive. That means taking concrete steps to plan for an incident much before it actually strikes. There is no one single approach that fits for all types of incidents as no two emergencies are identical. Much of business continuity planning varies based on the size of the company, company’s line of business, and the locations of the company, customers and suppliers.
There should be a contingency plan for anything no matter how possible. For example, the space shuttle had no less than 100 emergency landing sites throughout the world. This contingency plan did not have one plan with a backup plan it had a contingency plan and each contingency plan had another. No possible eventuality should ever be foolishly ruled out.
Contingency plans are plans developed for the worst case scenario. They are put in place to eliminate disruption in production if something were to go wrong. It is important to develop contingency plans to enable quick reactions to business threats and possible loss of time, profit, production, stock, relationships, etc. Plans should be developed with the thought that something definitely will go wrong.
The Business Continuity plan in Phase 1 is developed to introduce recovery overview information in four parts:
A contingency plan and disaster recovery methodology is integral to maintaining the security principles of integrity and availability (Herzig, Walsh, & Gallagher, 2013). Proactively understanding departmental workflows and dependencies support effective recovery capabilities and are essential to business operations that involve healthcare information systems which ultimately sustain clinical care. This policy defines the use and disclosure of ePHI shared through a network established as a health information exchange (HIE) that is managed during times of a disaster event and also prevention of significant impacts of disaster events through business continuity procedures and contingency planning. This policy follows the rules and regulations for compliance with federal HIPAA and HITECH Acts for security and privacy regarding the use of
Why is it necessary for our country to have an effective emergency plan in place? Why does it matter how the country responds to emergencies when every part of our country, including cities and states, face emergency situations on a daily basis all over? Some are bad to worse, and some horrific to deadly. Well, this paper explains the importance of the National Response Plan and why it is necessary for our country to have it in place. It explores several articles that have been published to show the results on the effectiveness and response of the National Response Plan.
Unfortunately, sudden death, suicide, and violence are crisis incidents that occur in schools. These types of events impact the lives of students and result in an increased need for crisis counseling. In the event of a crisis it takes a collective and collaborative effort amongst school staff, community members, and mental health professionals to help the school, and students recover. The school staff must be prepared to respond quickly after a crisis has occurred. They will be confronted immediately with a number of serious issues. For example, they will need to verify what actually happened, protect the privacy of the students and their families, help students cope, and work with parents. In the event of a crisis, normal coping mechanisms
The effective contingency plan should only include the high-priority items and it should be as simple as possible. The purpose for the contingency plans is to response quickly when there are changes of an organization’s current strategy. For example, the predefined strategy is based on some assumptions about the economy but the outcome is not what the organization assumed, the contingency plan can support the organization to react promptly. The effective contingency planning includes a seven step process. First, Identify both beneficial and unfavorable events that could possibly derail the strategy. This step includes the development of the formal contingency planning policy statement in order to provide it to relevant stakeholders the authority and guideline that required developing the effective contingency plan. Policy will be published when executive confirms it. To gather the high-level business requirements, define scope and allocating project resources. Second, Specify trigger points and calculate about when contingent events are likely to occur. It involves the Business Impact Analysis (BIA) to identify threat scenarios, prioritize key business processes and critical systems for business continuity. Executive approval on those choices of the critical business functions and the priority to recover during the disaster. Third, Assess the
As an official I use a S.W.O.T analyses of our event, and communicate with the public and the media for a clear and transparent agenda that is safe and organized for the public.
An ERP defines the actions a company must take during an emergency. It details the emergency response resources available to the company, outlines roles and responsibilities of all respondents, and describes how the company will work with various government agencies during an incident. Houston Oil & Gas Ltd. has a strategically managed emergency response plan in place to handle emergencies that is coordinated between highly skilled operators in the field and knowledgeable veterans working at head office.
Contingency planners are now asserting that contingency planning is a value-added component that can be a competitive advantage in the marketplace as well a means of helping organizations save money. Processes that are deeply analyzed in terms of continuity will usually be more secure, and new ways of working may emerge to help streamline operations. Contingency planning can be useful when forging alliances with external organizations or during acquisition phases. Contingency planning should be part of an organization’s quality cycle as well. “Business continuity and disaster recovery have gained somewhat in the eyes of top corporate management since the start of the 1990s. As the industry has slowly evolved from what could almost have been called a ‘black art’ to something starting to resemble a disciplined science, basic business principles have begun to become increasingly relevant” (Rothstein, 2003, p. 1).
Disasters have become an inevitable part of businesses and organizations as well. They not only have a major effect on business and organizational continuity; they also result to an overhaul in organizational operational mechanisms (Awasthy, 2009). It is for this reason that many organizations and business resort to preparing business continuity plans and disaster recovery plans that will facilitate better disaster management in future. Effective disaster recovery plans are important to every business and organization (Thejendra, 2008).
Make contingency plans - Identify any unexpected risks or problems that could affect the accomplishment of planned objectives, and have a backup plan to cope with the situation. Contingency plans can be activated when there is an emergency, an immediate need to make alterations or improvements, or a problem that affects
A project to manufacture, deliver and install a large power transformer is time and resource (material and labour) consuming, relies on services and products provided by more than one supplier, involves multiple expertise, and costs tens of millions of Rands. If a transformer fails, the cost of rectification can go as high as over 70% of the price of a new one. By so saying, risk management and contingency planning plays a key role in the management of such a project. In this report, the need and process of risk management as well as the types of risks in relation to the power transformer project are discussed.
Owning a business can have many stressors day to day. When starting a business there is a lot of planning and preparation involved. Many small businesses are owners who have put their own money into the business and look at it as an investment. Unfortunately with all the planning that goes into starting a business, one thing is often over looked. Most of the time the “what ifs”, are not part of the planning stage. One reason for this is that people do not like to think of the bad things that could or may happen. So with all the time and planning put into starting a business why not put some extra thought into a plan B if a disaster strikes? This plan B could be a business continuity plan or a disaster recovery plan. Business continuity plans are an essential part of the modern day business. There are so many potential disasters for small businesses that could seize the production or even close the business down for good. A recent study from Gartner Inc., found that “90% of companies that experience data loss go out of business within two years. It also found that 80% of company owners have not thought about how they would keep their businesses up and running if a data disaster occurs.” According to the Association of Records Managers and Administrators, “about 60 percent of businesses that experience a major disaster such as a fire close