Contingency Planning

Contingency Planning Unforeseen threats never knock on the door before their arrival. They just arrive and destroy everything that comes in their path. Contingency planning provides protection against these unforeseen threats. In the case of an organization, contingency planning covers failures of critical systems, equipment, automated processes, energy, communications, suppliers, personnel, and natural calamities. It consists of the actions taken by the organization to prepare the organization for an impending emergency. It is a management tool used to analyze the impact of potential crises so that adequate and appropriate arrangements are made in advance. It is general enough that it confers different ideas to different disaster managers and emergency personnel, depending on their circumstance and area of concern. The cost to implement and activate a contingency plan can be high, but the impact of its absence is prohibitive. Further if a small contingency is not curtailed in time then it can create a snowball effect and rapidly generate a greater crisis. In the organization, it is essential to have mechanisms that ensure constant operation. When there is an unexpected disruption, an appropriate contingency plan can make a huge difference. The definition of an optimal contingency plan is a complex problem involving diverse resources such as systems, equipment, spare parts, services, and specialized manpower etc. The contingency solution involves alternative processes and recovery strategies so that in the case of a contingency, all the necessary resources are available in order to bring the system back to normal operation using the minimum resources and in the least possible time. Chinese general Sun Tzu has said, “Plan for what is difficult while it is easy, do what is great while it is small. The difficult things in this world must be done while they are easy; the...