Contingency plan why is it important




















For example, if you have monitoring equipment on your site, you may need to ensure you have alternative kit available at all times for use in the event of a failure. You will be audited against any missing or lost samples due to equipment failure and whether they have been rescheduled. The assessment will also take a look at whether there is a systematic and risk-based procedure for the representative monitoring and contingencies for your emissions. You should have a plan in place for dealing with any issues that may arise that are unexpected and how you might deal with them.

In the event of a prosecution, a robust contingency plan can stand as a mitigating factor, but if you lack a sufficient plan, you may receive an even heftier fine as evidenced in a number of recent prosecutions. Have you recently reviewed your contingency plans? Do they cover everything you need them to?

Net Zero Carbon means that an activity emits no carbon into the atmosphere. However, to be considered carbon neutral, a business needs to offset the carbon emissions it produces even if the emissions are increasing.

They well-evaluate all factors. Therefore, they eliminate the need for last minute comprehension and thus reduce the risk considerably. When a business faces disruption, whether in the form of natural disaster, a power outage or even moving of office space, having a contingency plan can help in minimizing the losses in production and thereby sales.

Plans to get production back on track despite unforeseen circumstances can be the difference between a business that survives disaster and the one that collapses. These are some excellent reasons for every business to devise contingency plans for its operations. It is better to be proactive and have a plan in place, even if the chances are slim that you will ever need to use them. You can create a contingency team and give them the responsibility of activating the plan when required.

Team members should be reviewed on a regular basis. New employees should be assigned to replace those who have left or are no longer suitable to carry on the task given to them. Regular training should also be provided on the contingency plan to ensure that the team remains refreshed.

Never allow the contingency plans to go stale. This is only going to render them useless as they will not take the latest circumstances into account.

As long as these steps are taken, your contingency plans will work seamlessly. June 14, 2, Reads share. January 8, 1, Reads share. December 27, 1, Reads share. Global December 28, Last updated April 7th, 10, Reads share. Waqar Hassan.

Image Credit:. Listed below are some great and elaborated reasons why having contingency plans is imperative for any business nowadays: Reason 1: Contingency plans for better preparation You can prepare for the worst in the best way possible if you know about any possible unpredictable events. Reason 2: For better flexibility Not only do contingency plans aid you in preparing for the worst, but they also enable your organization to become more flexible to any foreseeable challenges that may arise in the future.

Reason 3: For a quicker reaction A business with a contingency plan in place is more likely to respond quickly to unplanned events. Reason 4: For preventing panic It is not the danger that causes people to panic. Contingency plans are both organization-wide and department-specific. For example, information services departments typically have a disaster recovery plan to protect, restore and use company data, including computer hardware, software and instructional manuals.

Senior leadership has overall responsibility for contingency planning, including funding the work to develop, test and maintain the plan. Many organizations appoint a contingency plan coordinator or manager who has overall responsibility for developing and maintaining the plan.

In a small business, the coordinator may be the owner or a manager. She communicates with employees and trains them on the plan and their responsibilities. She regularly tests the plan using mock situations to identify problems and areas for improvement and updates the plan to reflect changes in the organization and technology. For example, if a hurricane is moving into the area, client account managers would have a script or checklist to use in communicating with each client.

Developing a contingency plan begins by identifying the functional areas essential to business operations and then following key steps for each area as follows:.



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