EVIDENCIA INGLES

UNDERSTANDING HOW TO MAKE A CONTINGENCY PLAN

EDWIN ALFONSO ARAGON AGAMEZ

INSTRUCTORA: MONICA RODRIGUEZ

SERVICIO NACIONAL DE APRENDIZAJE

DISTRIBUCIÓN FÍSICA INTERNACIONAL

BARRANQUILLA, MARZO 05 2022

 What is a contingency plan?

A business contingency plan is a backup strategy for your team or organization. Define

how you will respond if unforeseen events cause you to deviate from your original plan, for

example what necessary steps you will take if you lose a key customer or if your software

service goes down for more than three hours. Get detailed instructions on how to create a

contingency plan, so if something unexpected happens, your team can act quickly and get things

back on track.

A contingency plan is a proactive strategy that will help you deal with negative situations

and ensure business continuity. In this article, you'll learn what a contingency plan is, why it's

important to have one, how to create a contingency plan for unexpected events, and how to

develop recovery strategies and best practices to keep your business running.

How can a contingency plan be structured?

You can develop a contingency plan at various levels of your organization. For example,

if you are a team leader, you can create a contingency plan for your team or department.

Alternatively, company executives should create business contingency plans for situations that

could affect the entire organization.

 When creating your contingency plan, be sure to assess the probability and severity of

each risk. Then, once you've created your plan(s), get approval from your manager or department

head. That way, if a negative event occurs, your team can act and quickly resolve the risk

without having to wait for approvals.

What is the importance of the contingency plan?

This business continuity plan contains the guidelines for the company's behavior in the

event of an emergency. ... First of all, it helps you defend and maintain your company's position

in the market, avoiding or minimizing economic losses.

Example of a company that has not applied these plans and has had to close due to

bankruptcy

The closure of companies in Colombia increased greatly due to coronavirus issues, many

companies did not expect that a virus would force them to close their doors, a clear example is

the company AMALUNA, a circus in Canada that was forced to close and lay off 3,480 workers,

stating that they do not have sufficient resources for a new reopening what they had saved they

used to feed their circus animals and financial expenses.

 This is an example that this company went bankrupt due to the lack of a contingency plan

in its financial statements.