The word “contingency” refers to a plan or strategy that is made in case something unexpected happens during a project, business operation, or other tasks. Planning for possible risks and making a plan for how to deal with them if they happen are both parts of contingency planning.
Plans for what to do in case something goes wrong can look different depending on the project or operation and the possible risks. Some examples of contingency plans are backup plans for critical systems, emergency response plans for unplanned events like natural disasters or security breaches, and contingency budgets or resources to deal with unexpected cost overruns or shortages of resources.
The goal of contingency planning is to make sure that unexpected events or situations don’t ruin the project or operation too much and that it can keep going with as little trouble as possible. Planned contingencies can also help make an organization more resilient as a whole by identifying possible risks and building ways to deal with them in the organization’s culture and processes.
Planning for what could go wrong is an important part of risk management, and it should be done along with other risk management tasks like assessing risks and reducing risks. Effective contingency planning involves looking for possible risks and coming up with strategies to deal with them, as well as testing and improving those strategies to make sure they work and are right for the situation.
Usage
It is used in project planning / risk management
