3.3.6.2 Contingency Planning

Define contingency planning

Planning for the unexpected or potentially disastrous events

Give 2 irl examples of contingency planning

• Hurricane Katrina (2005): resulted in loss of life n property damage

  • contingency plan: national guard mobilised to provide rescue n relief efforts n temporary shelters established in louisiana superdome

• covid 19 pandemic (2020): nation wide lock downs, social distancing measures, travel restrictions n rapid dev of vaccines to control spread of virus

Define scenario planning

process of identifying uncertainties that may affect future of business and putting in place procedures to deal w these events if they occur

Outline the steps of scenario planning

1. IDENTIFY potential internal n external threats 🔫

2. brainstorm 💭🌩 n stimulate potential scenarios

3. identify potential outcomes to each scenarios

4. plan an approach to respond to scenarios

5. prioritise most likely scenarios

6. implement n rehearse procedures

What do risk assessments include?

1. identifying any potential scenarios

2. categorising them by severity

3. assigning a probability

4. planning a response

What do risks include?

• natural disasters

• IT systems failure

  • IT can be msision critical (w out it, bus. can no longer operate)

  • ability to make transactions, contact customers n control operations

  • threat of cyber attacks

  • loss of customer trust

• loss of key staff

  • loss of expertise

  • damage to brand if person is seen as key to brand integrity

  • knowledge going to competitors

Define risk mitigation

the actions taken by bus. to minimise/eliminate risk thru process of

• identifying

• assessing

• prioritising

helps minimise disruption allow the bus. to enjoy business continuity (to continue to operate)

Define succession planning

Planning for the loss of a leader or key member of personnel

What are some features of succession planning?

• part of workforce planning

• appoint ahead of time to allow for training and a hand over period

• talent development within org to identify those with potential to be future leaders

• leads to a smooth transition between leaders

Give five features of business impact analysis

• potential threats

  • what could go wrong

• probability

  • how likely is it to happen

• estimated effect

  • what’ll the cost to the business be? (financial AND rep)

• speed

  • how quickly it’ll impact business functions

  • how quickly can business respond

• mission critical functions

  • will it stop the business performing its main function

Give a few features of value

• sense of security

• limits damage

• speeds up recovery process

• informs staff training

• preventative measure can be part of CSR

• aids crisis management

Give a few features of limitations

• costly n time consuming (including opportunity costs)

• needs reviewing

• lack of predictability

outline the important steps in a contingency plan

1. acceptance

   1. catalogue possibilities

   2. preventative measures

2. crisis plan

3. testing

4. review

give three specific benefits of contingency planning

• helps reduce any disruptions to regular operations and minimizes any risk to your business

• react quickly and change gears as necessary

• Your plan can also help you position your business for efficient recovery after a disaster.

what role might risk assessment play in contingency planning

identifying the potential risk areas to create an effective response should those problems develop

give a few examples of recovery strategies that a business might employee

diversifying suppliers or establishing backup suppliers to ensure a consistent flow of essential resources

describe briefly the key steps in succession planning

• part of workforce planning

• appoint ahead of time to allow for training and a hand over period

• talent development within org to identify those with potential to be future leaders

• leads to a smooth transition between leaders