Contingency Planning

Contingency Planning

Contingency Planning Jonathan Poland

Contingency planning is a risk management strategy that involves developing alternative plans or strategies in case the primary plan is disrupted by unforeseen risks or events. The purpose of contingency planning is to minimize the negative impact of disruptions and to ensure that an organization is able to continue operating as smoothly as possible.

Contingency planning involves identifying potential risks that could disrupt the primary plan, assessing the likelihood and impact of those risks, and developing alternative plans or strategies to mitigate their effects. This may include identifying backup resources, establishing communication protocols, and implementing procedures for dealing with unexpected events.

Contingency planning is an important part of effective risk management, as it helps organizations to prepare for and respond to unexpected events that could have significant impacts on their operations. By developing contingency plans, organizations can minimize the potential consequences of disruptions and increase their ability to recover quickly and effectively. The following are illustrative examples.

A school near the sea plans for a tsunami. This includes a detailed evacuation route, procedures, roles & responsibilities, training and regular drills that are evaluated to drive improvements.

A city plans what it will do if air quality reaches dangerous levels. For example, they may identify sources of pollution that will be shutdown in an environmental emergency.

Infrastructure & Facilities
A firm plans what it will do if an entire data center goes offline for an extended period of time due to damage to infrastructure such as solar panels, electrical grids, telecom networks, roads and/or the facility itself.

A firm plans what to do if they lose a major partner. For example, an electronics manufacture that makes contingency plans for the loss of a core supplier.

A firm relies on the instincts and creative talent of a chief design officer who has consistently developed winning products. They plan what to do if the designer leaves the firm. For example, they may plan a professional development program that allows 6-12 designers to acquire the abilities required to one day assume the chief design position.

A firm plans what they will do if a major product update fails on the market.

A company plans what to do if political instability impacts its supply chain in a particular country or region.

A company plans what they will do if a trade war and resulting trade barriers causes their products to be uncompetitive in foreign markets.

A farmer plans what to do if corn prices fall dramatically such that it is no longer a viable crop on her land.

Learn More
Brand Status Jonathan Poland

Brand Status

Brand status refers to the social standing that is associated with a particular brand. Customers may use brands as a…

Concept Selling Jonathan Poland

Concept Selling

Concept selling is a approach to marketing and sales that involves framing unique selling propositions as a story that customers…

What is Cultural Fit? Jonathan Poland

What is Cultural Fit?

Culture fit refers to the compatibility of a candidate’s attitudes and experiences with an organization’s culture. It is a hiring…

Risk Contingency Jonathan Poland

Risk Contingency

A risk contingency plan is a course of action that is put in place to mitigate the negative consequences of…

Information Security Risk Jonathan Poland

Information Security Risk

Information security risk refers to the potential for unauthorized access, disruption, modification, or destruction of information. This can have serious…

Product Category Jonathan Poland

Product Category

A product category is a classification of similar or related products or services. These categories are often created by a…

Customer Convenience Jonathan Poland

Customer Convenience

Customer convenience refers to any aspect of the customer experience that makes it easier and more efficient for them. This…

Figure of Merit Jonathan Poland

Figure of Merit

A figure of merit (FOM) is a value used to evaluate the performance of a system or device. It is…

Economic Relations Jonathan Poland

Economic Relations

Economic relations between nations refer to the economic interactions that occur between them. These interactions can include the exchange of…

Content Database

Search over 1,000 posts on topics across
business, finance, and capital markets.

Risk Tolerance Jonathan Poland

Risk Tolerance

A risk is the possibility of an adverse event occurring, while a trigger is the root cause of that event.…

Employee Benefits Jonathan Poland

Employee Benefits

Employee benefits are additional forms of compensation offered to employees as part of their overall remuneration package. These benefits can…

Pricing Power Jonathan Poland

Pricing Power

Pricing power refers to a company’s ability to increase prices without significantly impacting demand for their products or services. This…

Employee Goals Jonathan Poland

Employee Goals

Employee goals are specific targets or objectives that are set for an individual employee in order to align their work…

Distribution Jonathan Poland


Distribution is the process of making a product or service available for use or consumption by consumers or businesses. It…

Capitalism Jonathan Poland


Capitalism is an economic system based on the principles of economic freedom, private ownership, and the creation of wealth through…

Sales Planning Jonathan Poland

Sales Planning

Sales planning is the process of setting revenue and unit targets for a sales team, and developing a plan to…

Sustainable Design Jonathan Poland

Sustainable Design

Designing for sustainability involves creating products, services, and processes that minimize environmental impact and enhance quality of life for the…

Industrial Internet of Things Jonathan Poland

Industrial Internet of Things

Industrial IoT describes the ecosystem of devices, sensors, applications, and associated networking equipment that work together to collect, monitor, and analyze data across industrial operations.