Contingency planning is a risk mitigation process for developing back-up plans in anticipation of events (scenarios) that might disrupt ‘business as usual’. Business continuity planning is an expanded version of contingency planning that typically encompasses a more comprehensive and extended response plan for getting back to ‘business as usual’.
In a well-formatted, highly-detailed research paper, address the need to contingency planning, ensuring to address the following items:
(1) Benefits of scenario events/planning.
(2) Questions to consider when implementing scenario planning.
(3) The common types of scenario planning.
Contingency planning is a critical process for organizations because a well-formulated plan can help organizations minimize damage from unforeseen events. While making these plans, organizations must ask certain questions, including what to do, who to do it, how it should be done, when it should be done, and where to do it. The common types of scenario planning include quantitative models, probability-based scenarios, interactive scenarios, normative scenarios, and strategic management scenarios.