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1.5.1 Why contingency plan?

The more complex the organisation or the planning process, or the larger the risk associated with failure, the greater the need for contingency plans. Contingency plans are essential for self-preservation survival and continuity of organisational purpose. Like insurance, they are often time consuming to develop, costly to administer and are intangible to most staff. However, when they are required their importance cannot be denied.

Contingency planning has taken off with the digitisation of businesses and the automation of once manual systems. Computer failure, such as the Y2K bug, has caused a refocus on risk management and contingency planning. Whether through natural, technological, or human causes, failure of systems of procedures can impact organisational success, and indeed survival.

Contingency plans are the alternative plans or courses of actions to be taken if an intended plan or course of action to achieve an agreed purpose is disrupted or is rendered inappropriate. They can be shaped around existing plans to identify where the risk of failure can occur, the potential causes, the resulting impact and the immediate remedial or mitigating actions that can be taken.

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