History has shown us that we cannot always take for granted the success of an initial plan when facing trying circumstances. We need to be prepared to formulate a contingency strategy should the primary course of action be unsuccessful.
Not only does this provide the best chance of continuing business success, it also demonstrates forward-thinking by directors. With an ever-present risk of financial decline in our global economy, contingency planning offers confidence to all parties who hold a vested interest in a company’s ongoing success.
Contingency plans are typically devised to help mitigate the effects of a potentially disastrous situation. This could be the death of a key member of staff, a cyber-attack, destruction of a key asset (such as premises), or general mismanagement. The contingency plan will set out what steps need to be taken in order to restore order to the company and allow business operations to continue and remain viable. In certain industries, a contingency plan may be utilised to prepare for dealing with a more positive scenario such as an unexpected influx of orders, or rapid company growth.
Depending on the company’s structure, turnover, and the sector it operates within, a contingency plan may include the following:
Risk management is a crucial element to running any business, and you should ensure you are well covered should the worst happen. By taking an individual approach we can tailor-make a plan which works for you and your business, taking into account the specific challenges you may face in the future and advising on the best ways to overcome them.