Why is it important to have a contingency plan?
Mia Phillips
Updated on March 01, 2026
“The purpose of any contingency plan is to allow an organization to return to its daily operations as quickly as possible after an unforeseen event. The contingency plan protects resources, minimizes customer inconvenience and identifies key staff, assigning specific responsibilities in the context of the recovery.”
Why do we need a contingency plan in time of disaster?
Contingency planning aims to prepare an organization to respond well to an emergency and its potential humanitarian impact. Such planning is a management tool, involving all sectors, which can help ensure timely and effective provision of humanitarian aid to those most in need when a disaster occurs.
What is a contingency plan used for?
A contingency plan is a plan devised for an outcome other than in the usual (expected) plan. It is often used for risk management for an exceptional risk that, though unlikely, would have catastrophic consequences. Contingency plans are often devised by governments or businesses.
How do you maintain a contingency plan?
Here are four steps to keep in mind when maintaining your contingency plans: Ensure all employees are aware of the plans and provide regular online training to keep employees updated. Ensure all employees know their roles when disaster strikes. Conduct drills to prepare employees for dangerous situations.
What must a contingency plan include?
Your contingency plan should include a step by step guideline for what to do in case the event has occurred and how to handle the situation. Furthermore, it should also include information about the key personnel to reach out to including their up to date contact information.
When do you need a disaster contingency plan?
You are moving along in your business and everything is going smoothly. Suddenly, just out of the blue, disaster strikes when the unexpected happens. This could be anything like a natural disaster such as earthquake or tsunami. It could also be something like a medical emergency for you or even your most valuable employee.
These can be addressed by better integrating the current diverse practices of contingency planning and business continuity planning through establishing agreed standards and tools for multi-hazard emergency preparedness. Contingency planning ensures that we know what to do when disaster strikes, and have the systems and tools to respond fast.
What are the objectives of an earthquake contingency plan?
OBJECTIVE: 1. To mitigate impact of earth-quake disaster through community awareness and preparedness. 2. To provide effective support to all concerned. 3. To keep co-ordination and co-operation with other line departments or stake holders. 4. To develop immediate and long term support system. 5.
Do you need to prepare for event contingencies?
However, if you have a large-scale event, you need to prepare a specialized team that will look after nothing by event contingencies and emergencies. Whatever is the case, once you are finished with the planning part, make sure to have some basics clear with the contingency team members regarding the implementation including: