Contingency Planning (DP IB Business Management)

Helps businesses to respond immediately

• Clear staff roles & responsibilities 

• Resources are identified and available 

• Procedures are shared in advance

A time-consuming process

• Risk assessment takes valuable management time

• Plans need to be revisited regularly 

• Staff require training

Can reduce costs 

• Emergency equipment/resources are purchased in advance

• Financial losses are likely to be lower

Spending on resources needed in a crisis may be wasted if not needed

Difficult to budget for unknown crisis situations 

Procedures keep stakeholders such as staff and customers safe

• Training increases awareness

• Legal obligations should be met (e.g. fire regulations)

Bureaucratic and difficult to implement swiftly

Leadership and compliance from staff or other stakeholders is needed

Most likely threats are considered in detail

• Reduces legal risks if procedures are followed

Requires up to date and complete information to be effective

Human reactions such as fear and panic cannot be fully mitigated