Discussion on Contingency Plan

Contingency Plan
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As its name suggests, a contingency plan is usually more of a backup plan. It comes in handy when the first line of action or methods falls through or calls for supplementation. In the business world, however, it is the various strategies put in place to combat the unforeseen, unavoidable incident or situation that can hamper the routine operations of the company, be it through its financial reports or regular activities. A contingency plan is necessary to prevent any dire impacts or shocks in the business, even if the shocks originate from a bumper business deal (Duff, n.d.).The main challenges that are usually encompassed by this plan include the security of assets, the progress or continuity of the business, and handling of crisis.
The first thing that stands out is the handling of crises. The disaster has a knack of striking when least expected. These disasters can be natural, such as earthquakes and floods, or artificial, such as terrorist attacks, fires and injuries. A contingency plan for this would entail gauging the capability of the business and the systems that have been put in place, to see if they can handle any of the crises.If they are found not to, then the plan would be to design a parallel system that can run independently on its own, when the central operations stall (Andrushko, n.d.).
There is also the contingency plan for the continuity of the business. In this case, it is inevitable that the management of the enterprise will change hands at one time or the other. For example in the instance of death or re...