Contingency Planning (DP IB Business Management)
Revision Note
Written by: Lisa Eades
Reviewed by: Steve Vorster
The Impact of Contingency Planning
Ongoing contingency planning is a proactive process where a set of procedures to be followed if specific events or situations occur is developed
Regular risk assessments of potential disruptions and their impacts are carried out
Procedures commonly cover risks such as fire or weather-related emergencies
Evacuation plans are communicated and practised regularly
Key staff are given emergency responsibilities
Alarm systems are tested
Preventative measures protect stock and equipment - for example, the installation of fireproof doors
Contingency planning can help a business to survive and recover from a period of crisis
However drawing up detailed contingency plans requires time and investment
Evaluating Contingency Planning
Factor | Benefits | Limitations |
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Time |
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Cost |
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Safety |
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Risk |
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Examiner Tip
Despite the drawbacks, it is difficult to argue that businesses shouldn't engage in contingency planning to some extent
At the very least evacuation plans and some structures to allow for business continuity in case of, for example, poor weather can be put in place with relative ease
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