5.5

Question 1

What is a contingency plan?

Answer 1

Substitute plan if the original one does not work so that the effect on the original plan failing can be minimised

Question 2

What are the advantages of a contingency plan?

Answer 2

Good for managers to identify problems
Minimise problems allow a business to suffer less damage
Proactive
Employees know what to do if there is a problem so it can be overcome quickly and effectively

Question 3

What are the disadvantages of a contingency plan?

Answer 3

Problems identified might not occur, waste of time
Lengthy process that involves many employees who could be getting on with their job

Question 4

How would you create a contingency plan?

Answer 4

Identify problems by carrying out a risk assessment
Prioritise problems by putting them in order of the chance of occurrence
Draw up a contigency plan to minimise the effect of the potential problem, should include HR plan (allocating roles) and a communication plan.
Execute and review