The occurrence of a natural hazard can easily spiral into a disaster if there isn't proper contingency planning. Planning before a disaster takes place provides ready actions and supplies so you can respond effectively. A contingency plan is part of a complete hazards-response package, partnered with a recovery plan.
Contingency Plan Defined
A business contingency plan, also known as a business continuity plan, provides a tiered set of responses to any disruptive event so a business can continue its critical functions. A contingency plan evaluates the risks an organization faces, organizes the hazards response teams, defines the specific strategies and actions to respond to each risk and the timetable for implementation.
Plan Sections
A business contingency plan includes the governance of the contingency program - the planning committee and the response teams. It names specific members, including the executive sponsor, the contingency program coordinator, security officer, chief information officer and a representative of each business unit. The business impact analysis of the plan identifies and prioritizes the organization's critical functions and impacts of potential disruptions, as well as potential revenue losses, expenses, intangible losses, insurance needs and dependencies. The mitigation and readiness procedures section defines and details the various levels of response to each identified threat. It also includes the duties and responsibilities of each response and/or task team.
Who Develops the Plan
The contingency planning committee develops the plan working with each business unit and the organization's risk management staff. Organizations without a risk-management staff may choose to hire a consultant to assist in directing the effort.
Testing and Updating
Perhaps the most effective quality assurance technique -- live testing of the plan -- determines the effectiveness and relevance of its strategies. Testing also identifies plan holes, inconsistencies and cross-training needs. The plan should be updated according to the testing results to best serve the organization.
Tags: contingency plan, business contingency, business contingency plan, business unit, contingency planning, contingency program, critical functions